Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

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Efficiency Ratios Making the Most of Your Assets

Efficiency ratios help you evaluate how efficiently you manage certain key balance sheet assets and liabilities.

The phrase managing the balance sheet may have a peculiar ring, especially since most managers are accustomed to focusing only on the income statement. But think about it: the balance sheet lists assets and liabilities, and these assets and liabilities are always in flux. If you can reduce inventory or speed up collection of receivables, you will have a direct and immediate impact on your company’s cash position. You may have been part of a team that worked either with production and inventory or with accounting and accounts receivable. But did you ever consider that the assignment ...