Why should you use ratios to make financial judgments? Well, are you curious how well your business is doing financially? Or maybe you’re looking to acquire or invest in a business and want to know what to look for? Ratios are a great way to judge a company’s financial performance. In this weeks podcast I’ll go over the most common ratios and what they mean for your business.
To be a successful business owner, you need to be able to judge your company’s financial performance. One way to do this is by using ratios. Ratios can help you see whether your company is making money and growing or whether it’s struggling.
In this podcast I’ll explain what ratios are and how to use them to assess your business’ financial health. Check out the I Hate Numbers You Tube channel to see a worked example. use these example ratios as a guide. So, if you’re interested in learning more about ratios and how they can help you gauge your company’s financial well-being, listen to find out more!
Conclusion
In order to make good financial decisions for your business you need to know how to use ratios to make financial judgments. Whether you’re the one in charge of making them or advising those who are- it’s important that you understand how to judge performance. Ratios are a popular and accessible way to do this, but there are many different ways to look at finances. No matter where you stand on the spectrum of financial know-how, I hope this video has helped introduce you to the basics of ratio analysis and shown you how informative and valuable it can be when used correctly.
Check this link to learn more about financial statements. I invite you to join my Numbers Know How Financial Story Plan Community. I’d love to have you there!
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