Are you concerned about the financial information you are receiving? Not sure where the problems are stemming from? Financial ratio analysis provides you with this information by analysing the data contained within your Balance Sheet and Profit & Loss reports. Make financial decisions and provide correct information to any involved external parties. Monitor your ratio analysis on a monthly or quarterly basis. This will allow you to put out any financial fires before they take hold. There are a number of types of financial ratio analysis – Gross Margin Ratio, Liquidity Ratio, Working Capital Ratio amongst others. Measure Cash Flow and ensure that your business will have the funds to pay bills when they are due. Even take a wage for yourself.
20Dec
Gross Profit Margin Analysis Boosts Profit Explained
Gross Margin Analysis opens the door to understanding the complex interactions between Revenue, COGS (Cost of Goods Sold or Operating Expenses) and Gross Profit. It can be hard to understand why (e.g.) Revenue is going up but Gross Profit is going down! Gross Margin also lets you measure the operating...