In this fourth posting about the financial ratios that help businesses understand how they can do more, we cover a Debt Service Ratio and what it means. A Debt Service ratio is one of the five ratios contained in our FREE Business Health Check that we provide to SME businesses that are looking for opportunities to improve.
A Debt Service Ratio tells a bank or lender (as well as a business owner) how much cash or income is being used to cover interest payments due on liabilities of the business. The formula Continue reading “How healthy is your business? Part 4 [VIDEO]”
We are in the middle of reviewing 5 financial measurements covered in our FREE Business Health Check that can provide your business with an understanding of what it can be working on to help it do more. In our experience, most SME businesses do not know what these 5 financial ratios mean and how they relate to their business planning. We have covered the Quick Ratio and the Current Ratio with this posting detailing what a Debt Ratio is and what it means.
A Debt Ratio is the comparison of total debt to total assets. In our last posting we Continue reading “How healthy is your business? Part 3 [VIDEO]”
In this second of five postings we pick up where we left off and cover what a Current Ratio is. It is important to remember that these postings are meant to be a guidelines for SME businesses to consider and specific details change from business to business and market to market. We also offer SME businesses a FREE Business Health Check to give them a starting point for understanding what they can be doing to help their business do more.
A Current Ratio is similar to a Quick Ratio (as covered in the previous post) but is not centered around cash as much as Continue reading “How healthy is your business? Part 2 [VIDEO]”
Over the next several blog entries we will be reviewing 5 financial ratios that can provide you insight into your business and how healthy it is. While the target for each of the ratios varies from industry to industry we are hopeful that the information will nevertheless be useful for you in understanding how your business can do more. We also have a FREE Business Health Check that we can complete for your business.
The Quick ratio lets a business know how well it is positioned to Continue reading “How healthy is your business? Part 1 [VIDEO]”
If your business generates less than $10,000,000 in annual revenue and don’t have a CFO (Chief Financial Officer) or senior Controller you may want to consider Continue reading “Earn less than $10,000,000? No CFO? No Controller?”