Financial Statements and Analysis
Financial Statement Analysis for Your Small Business Firm
This article presents an overview of financial statement analysis for the small business. It touches on the income statement, the balance sheet, and the statement of cash flows.
How Do You Do Financial Statement Analysis?
In order to stay solvent and profitable, financial statement analysis is a necessary activity for a business firm to perform on a regular basis. Here are some of the best techniques to use for financial statement analysis.
Common Size Income Statement Analysis- An Example
There are a number of types of financial statement analysis that a business owner can use to determine the financial health and position of the business firm. A simple form is common size or vertical analysis.
An Overview of Financial Ratio Analysis
Using financial ratios is a powerful tool of financial analysis for the small business firm. Financial ratio analysis is powerful if you compare your ratios to either industry or time-series data.
Financial Ratio Analysis Tutorial 101
This financial ratio analysis tutorial gets you started with learning to analyze your business firm by looking at 13 financial ratios.
Learn how to calculate, analysis, and manage your profitability from a number of different perspectives with these articles about profitability ratios and their calculation, analysis, and management.
Tutorial on Beginning Debt Management Financial Ratio Analysis
Debt management, or financial leverage, ratios are some of the most important for a small business owner to calculate for financial ratio analysis for the small business. This tutorial will show how to calculate the debt to assets ratio, the debt to equity ratio, the times interest earned ratio, the fixed charge coverage ratio, and the long term debt to total capitalization ratio.
Tutorial - An Analysis of a Company's Liquidity Position Using Financial Ratios
This tutorial shows how to do a simple liquidity analysis using the current and quick ratios, along with net working capital, to analyze a company's current financial position with regard to its liquidity and solvency.
How do you Determine Profit or Net Iincome?
Profit or net income is calculated using accrual accounting. Cash flow is determined by cash accounting.
Are a Firm's Cash Flow and Profit Different?
Cash flow and profit are not the same thing. Cash flow is the money the business owner has available. Profit or net income is determined by when sales are made.
Free Cash Flow is the Gold Standard of a Company's Financial Health
Free cash flow is the cash a company has available after meeting all its obligations including increases in fixed assets and paying dividends. It's a better method of determining a company's financial health than earnings per share.
What is Return on Invested Capital and How is it Calculated?
Return on invested capital is a performance and profitability ratio that is one of the most important valuation measures. Here is an explanation and calculation of the return on invested capital ratio.
Accounting Ratios for Financial Statement Analysis
This is a list of financial ratios that accountants typically use to analyze a business firm.
Small Business Accounting Products from the IRS
This is a link to an assortment of accounting products offered by the Internal Revenue Service that may be helpful to small businesses for analyzing their financial position.
Back to the Basics with Account Reconciliations
This is a good article on getting back to the basics of business accounting with basic account reconciliations.
Time for a Checkup
This is a good article giving you some helpful hints on how to check up on your small business's financial health.
Controlling Asset Growth in Small Business Firms
As small businesses grow their sales, they also grow their asset base of different types of assets. Asset growth should be controlled and production has to be matched to sales needs.