Financial Statement

Understanding Profitability ratios

Profitability ratios give the avenue to evaluate a company’s level of profitability by expressing sales and profits as a percentage of various other items. Here are the most basic profitability ratios: There are many other ratios in addition to those… Read More ›

Ratio analysis

By themselves, financial statements tell you quite a bit. But how do you interpret all the numbers these statements provide? For example, is your company’s profit large or small? Is the level of debt healthy or not? Ratio analysis helps you dig deeper… Read More ›

Three financial statements

These three financial statement offers three different perspectives on the organization’s financial performance: Income statement. This statement shows “the bottom line.” It indicates how much profit or loss your organization generates over a period of time (could be a month, a quarter,… Read More ›

Accounting methods

Before you can understand the financial statements your organization uses, you need to understand the accounting methods companies use. But this and other aspects of financial intelligence are hard to talk about without examples and data. There are two accounting… Read More ›