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How Companies Use Ratio Analysis to Evaluate Performance

The period end liquidity, profitability, performance and solvency ratios have been calculated but what do you do with them now? This article explores ratio analysis and explains what to do with ratios in order to evaluate how the business is performing.

There are many ratios used by businesses to measure the performance and these include things like the current ratio, the quick ratio, gross margin, net profit margin, return on capital employed, debtor days, creditor days and stock holding days to name but a few.


Content Source: BukisaHow Companies Use Ratio Analysis to Evaluate Performance