23 tagged with "Financial Ratios"
Key financial ratios like ROA, ROE, and profitability metrics for measuring business performance
Sales-to-AR Ratio: The Cash Flow Metric Quietly Strangling Small Businesses
The sales-to-AR ratio measures the share of revenue stuck in unpaid invoices. This guide explains how to calculate it, what good looks like by industry, and how to drive it down within one or two quarters.
Days Sales Outstanding (DSO): A Practical Guide to Faster Collections
Days Sales Outstanding measures the average days it takes to collect on credit sales. This guide covers the DSO formula, 2026 industry benchmarks from 7 to 90 days, and concrete tactics to shorten the cash collection cycle.
The DSO Formula: How to Measure (and Fix) the Gap Between Sales and Cash
Days Sales Outstanding measures the average days between a credit sale and cash collected. This guide covers the DSO formula, industry benchmarks (30-45 days is typical, single digits for e-commerce, 60-90 for construction), common miscalculations, and seven practical levers to lower it.
How to Read Your Income Statement: A Complete Guide for Small Business Owners
Your income statement reveals whether your business model actually works—not just whether the bank balance is positive. Learn every line item from revenue to net income, how to calculate all three profit margins, and how to spot cost trends before they compound.
Is Your Business Financially Healthy? 10 Essential Questions to Ask Right Now
Revenue is one of the least useful indicators of business health. This guide walks through 10 diagnostic questions—covering gross margin, current ratio, DSCR, AR turnover, and more—that reveal whether your business is actually on solid financial footing.
Profit Margin: The Complete Guide for Small Business Owners
Learn how to calculate gross, operating, and net profit margins, what counts as a healthy margin by industry, and six proven strategies to improve your bottom line.
The Income Statement Explained: A Complete Guide for Small Business Owners
A line-by-line breakdown of the income statement for small business owners — covering revenue, COGS, gross profit, operating income, and net income, plus key ratios and the five most common mistakes that distort results.
How to Read and Analyze Financial Statements: A Complete Guide for Business Owners
A practical guide to reading income statements, balance sheets, and cash flow statements—with the key ratios that reveal whether your business is actually healthy, not just profitable on paper.
How to Calculate Profit Margin: The Complete Guide for Small Business Owners
Gross, operating, and net profit margin explained with formulas, industry benchmarks, and worked examples—so small business owners can measure and improve true profitability.
What Is a Good Profit Margin? Industry Benchmarks and How to Improve Yours
A 5% profit margin can mean thriving in one industry and failing in another. This guide explains what a good profit margin looks like by industry, how to calculate all three types, and proven strategies to improve yours.
Return on Assets (ROA): What It Is, How to Calculate It, and How to Improve It
Learn what Return on Assets (ROA) is, how to calculate it step by step, what constitutes a good ROA by industry, how ROA compares to ROE and ROIC, and six proven strategies to improve your ROA.