Balance Sheet Basics by Ronald C. Spurga

Author:Ronald C. Spurga
Language: eng
Format: epub
Publisher: Penguin Publishing Group
Published: 2010-10-15T04:00:00+00:00

8

EVALUATING AND INTERPRETING RATIOS

Putting ratios through their paces is likely to repay the time and effort many times over. Many a small business has been able to place operations on a sounder basis through examination of the relationships of margins and costs to sales, and by restoring balance to financial structure. Identification of a problem area can be made simpler with standards of attainable goals such as are provided by ratios. The first step in evaluating and interpreting ratios is establishing a point of view.

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