O'Reilly logo

The Essentials of Finance and Accounting for Nonfinancial Managers, 3rd Edition by Edward Fields

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER SIX

images

Key Financial Ratios

Ratios are mathematical calculations that the company can use to evaluate its performance. They help the company to determine whether trends are improving or deteriorating. They are calculated by comparing two numbers with each other. The most valuable use of ratios is to compare this year’s ratios with the same ratios for the previous year, and also with the ratios of other companies in a similar business. Ratios also serve as goals for future performance.

Statistical Indicators

Many of us use statistical indicators, many of which are ratios, to monitor the business. These key indicators include:

  • Output per labor ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required