It’s Monday again and that means another “Ratio to Know.” These casts are designed to help small business oeprators to better understand the financial statements provided by their accountant.

This week we take a look at the Debt-to-Asset ratio; an indicator of how lighly leveraged a business is. Do you know what perecentage of your business assets are financed through debt?

I’ll be back next Monday with another calculation you can perform on you financial statements in order to gain more insight into the figures.

If you have any comments or suggestions regarding the Ratios to Know series, I’d love to hear them. Until next time….

Another Monday and another nifty “Ratio to Know.”  Last week we took a look at the Current Ratio. One of the disadvantages of the Current Ratio was the fact it did not take into account the actual composition of the assets. The Quick Ratio (commonly called the Acid Test) goes some way towards overcoming this particular issue.

As you can see, the Quick Ratio gives us a snapshot of our immediate liquidity – that’s always good to know!

I’ll be back next Monday with another calculation you can perform on you financial statements in order to gain more insight into the figures.

If you have any comments or suggestions regarding the Ratios to Know series, I’d love to hear them. Until next time….

What better time than a rainy long weekend to begin a new series of screencasts. “Ratios to know” are being created with the small business operator in mind. Hopefully, they will assist in understanding what some of those numbers in your financial statements actually mean.

We’ve kicked off the series with a look at the Current Ratio; a simple and popular measure of  liquidity.

We can see from the clip that while the current ratio is quite simple, it doesn’t necessarily give us a full or accurate picture on it’s own.

In the next cast, we’ll take a look at the Quick Ratio (also called the Acid Test).

If you have any comments or suggestions regarding the Ratios to Know series, I’d love to hear them. Until next time….