One of the most effective ways to compare two businesses is to perform a ratio analysis on each company's financial statements. A ratio analysis looks at various numbers in the financial statements ...

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

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You might feel a little overwhelmed by the many facts and figures used to evaluate a corporation's financial condition. One of the figures that you need to calculate and understand is the return on ...

Opinions expressed by Entrepreneur contributors are their own. Everything in business is relative. The numbers for your profits, sales, and net worth need to be compared with other components of your ...