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Author: Kevin Lowther

Financial ratios are quantitative measures used to assess the performance and the overall financial health of a business. The end goal of using ratio analysis is to improve the decision making process. Ratio analysis not only compares similar companies against each other, but also can be used to track the performance of a company year to year. In this article I classify the financial ratios into five categories: profitability, leverage, liquidity, efficiency and growth. Profitability Ratios Profitability ratios are financial metrics used to...

What is the Cash Conversion Cycle: it measures how quickly a company converts cash into more cash. Keeping on top of your accounts receivable and payables is essential in an inflationary environment. While official government measures show inflation around 3 percent, the reality feels a lot different at the gas pump and with our vendors. Many business owners also will be painfully aware that financing rates are much higher than they were several years ago. The Impact of Inflation Inflation can significantly...