Business owners tend to dislike the financial management of their firm. Who can blame them!? It certainly isn't as fun as marketing or advertising or developing an ecommerce site. But, there is one thing about learning about the financial management of your business firm. It is absolutely necessary. So, you gotta suck it up and learn it. This first financial ratio analysis tutorial, the first in a series of tutorials on financial ratio analysis I'm writing, will get your started.
This tutorial is going to teach you to do a cursory financial ratio analysis of your company with only 13 ratios. Yes, with only 13 financial ratios, you can get a pretty good idea of where your company stands. Of course, you need either past financial statements to compare your current financial statements against or you need industry data. In this tutorial, I'll use past financial statements and do a time-series analysis. Maybe in another tutorial, I'll show you how to do a cross-sectional with industry financial ratio analysis.
Let's get started!