Saturday 6 June 2015

The Most Helpful Money Metrics to Monitor The...

Each business needs its own measures of success, but here are some money metrics

The Most Helpful Money Metrics to Monitor The...

When most entrepreneurs want to know how they’re doing financially, they look at their bank balance and see what’s there. Bank balance accounting – although wildly popular – is a lousy method for accurately assessing the health of a business. Here are eight better ways to monitor how your company, or any company, is doing. 1. Current ratio = Current assets/Current liabilities. While lots of folks get themselves needlessly worked up over five years’ worth of financial projections, an incredibly useful metric can be a company’s immediate ability to pay its bills. If you divide current assets by current liabilities, you get the current ratio – a measure of a company’s liquidity. If a business has little-to-no liquid value, that can be a red...Read More
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