|
Financial
ratios are another key indicator of an organization's financial
health. We acknowledge the importance of ratio analysis
for business success and provide organizations with actionable
knowledge that is important for their decision making and
monitoring of business progress. Success Profiles offers a
series of ratio analysis to help your company identify and
track your organization's critical financial ratios, and if
necessary help you to identify and take action against any
deficient ratios. In addition, we utilized industry
specific information from sources such as Robert Morris and
Associates and Dun and Bradstreet for comparative analysis.
The
financial ratios or critical numbers your company focuses on
depend upon a variety of factors: the industry, the business
size, the accounting method utilized, or where the company is
in the business cycle. For this reason, Success Profiles utilizes
a number of ratio analysis including:
Liquidity ratios:
- Liquidity ratios focus on a company's ability to repay
debts. These ratios include the current ratio, quick ratio,
sales/receivables, cost of sales inventory, days' receivable,
days' inventory, cost of sales/payables, days' payable,
and sales/working capital.
Profitability ratios:
- Profitability ratios measure how well the business is
utilizing its assets to generate profits. These include
return on assets, return on equity, return on sales, return
on assets.
Activity ratios:
- Activity ratios measure the efficiency, activity and changes
in specific assets. These include turnover ratios and inventory
turnover.
Leverage ratios:
- Leverage ratios measure the amount of debt a company has
and how effective a company is in managing that debt. The
most common leverage ratio is the Debt to Equity.
Contact
Us
for
more information on ratio analysis.
|
Ratio
Analysis
