Ratios turn financial statements into simple signals. They show how healthy your business is and how it compares with competitors.
1. Current ratio
Current assets divided by current liabilities. It shows whether you can pay your short-term bills. A result well below 1 can signal pressure.
2. Gross profit margin
Gross profit divided by revenue. It shows how much you keep from each sale after the direct cost of delivering it.
3. Net profit margin
Net profit divided by revenue. It shows what is left after all costs, including overheads and tax.
4. Receivable days
Trade receivables divided by revenue, multiplied by 365. It shows how long customers take to pay you.
5. Debt-to-equity ratio
Total debt divided by total equity. It shows how much of the business is funded by borrowing.
Compare, do not just calculate
A ratio means more when you compare it with earlier periods and with similar businesses. Competitor comparisons rely on publicly available information, so they show the general direction rather than exact figures.
Our comparative ratio analysis service calculates these ratios for you, benchmarks them against competitors and explains what to do next.
