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8 Steps To Use Financial Ratios To Improve Your Businesses [INFOGRAPHIC]

Editorial Team by Editorial Team
October 3, 2024
in Empowerment
0
Home Empowerment
Tiffany Co

Why are financial ratios important?

It is crucial to concentrate on financial ratios as it offers business owners a chance to assess financial performance. Comparing business, the income statement, balance sheet, and cash flow offer some insight. Going beyond the numbers requires understanding financial ratios to show business improvement.

8 Steps to use financial ratios to improve your Businesses

1. Considering gross margin percentage

2. Net operating margin percentage

3. Operating leverage

4. Financial leverage

5. Total leverage

6. Debt-to-equity ratio

7.Quick and current ratios

8. Return on equity

8 steps to use financial ratios to improve your businesses

Source: 8 Steps To Use Financial Ratios To Improve Your Businesses

Source: Cosmo Politian

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