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QuickBooks 2024 All-in-One For Dummies
book

QuickBooks 2024 All-in-One For Dummies

by Stephen L. Nelson, Christian Block
November 2023
Beginner content levelBeginner
640 pages
16h 20m
English
For Dummies
Content preview from QuickBooks 2024 All-in-One For Dummies

Chapter 1

Ratio Analysis

IN THIS CHAPTER

Bullet Introducing examples of and caveats about ratio analysis

Bullet Analyzing liquidity ratios

Bullet Analyzing leverage ratios

Bullet Analyzing activity ratios

Bullet Analyzing profitability ratios

Numbers from your financial statements make more sense when you can compare them with other numbers and external benchmarks. In this chapter, I talk about how you can perform this sort of analysis, which is called ratio analysis. Even if you’re not a numbers person, you can use ratio analysis to your benefit. Ratio analysis is easy to apply, and it enables even the nonquantitative type of person who uses it to better understand the information in financial statements.

Let me give you a quick example of ratio analysis. One particularly useful ratio is the gross margin percentage, which is your gross margin divided by your total sales. Although this ratio may not seem useful at first blush, it can be very valuable.

If you compare your gross margin percentage for this year with ...

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Publisher Resources

ISBN: 9781394206353Purchase Link