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What is ratio analysis, how can it benefit my business [copy]

What is ratio analysis, how can it benefit my business [copy]

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What is ratio analysis, how can it benefit my business?: [Final Edition] Marinig, Christy. Daily Press [Timmins, Ont] 26 Apr 2006: A8 Front. Entrepreneurs could benefit from understanding the basics of financial ratio analysis . Ratios can provide clues to underlying conditions that may not be readily apparent. In order to plan effectively, owners need to be familiar with the firm's strengths, weaknesses and overall financial position. Ratio analysis can help with these details and to put the raw numbers into perspective. With detailed financial statements and a few simple calculations owners can gain additional insight into their operations. Ratios , in essence, help to "take the pulse" of a firm's financial situation and allow business owners to compare their enterprises against competitors or against industry averages. Ratios can also be used to provide internal comparisons over two or more years. It is important to keep current economic circumstances in mind when analyzing financial statements. Inflation, unemployment levels, and various world events can impact performance so
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