Your Small Business Resource
Before you start analyzing your small business’s financial health, gather your balance sheet, income statement, and cash flow statement. Then, you can start using these common ratios to analyze your company’s profitability, liquidity, and...
If you’re buying supplies and materials on credit, it’s essential to keep track of your accounts payable turnover rate. Your accounts payable turnover rate tells you how many times per accounting period (such as...
When you’re analyzing your company’s financial health, it’s essential to pay attention to your gross profit and gross profit margin. Gross profit Your gross profit indicates how much money your company makes after deducting...
A balance sheet is a snapshot of your company’s assets, liabilities, and net worth at a specific point in time. Balance sheets are usually prepared at the end of a month, quarter, or year,...
An income statement, also called a profit and loss statement, shows all your revenue streams and expenses over time so you can calculate your net income. It shows how much money your company will...
A cash flow statement shows you how much cash comes in to and goes out of your business over a specified period – usually a quarter or a year. It shows how much money...
Working capital is the cash your company has available for its day-to-day operations. Having enough money to function is particularly important during the startup phase of your business. It’s a good idea to keep...