Master Your Money: 5 Essential Financial Ratios Every Small Business Owner Must Track

Lenders look at specific financial ratios when evaluating loan applications. Understanding these ratios helps you identify problems before they become crises.

Why Financial Ratios Matter for Small Businesses

Financial ratios transform raw numbers into actionable insights. They help you:

• Identify strengths and weaknesses in your business operations

• Compare performance to industry standards

• Make informed decisions about investments and expenses

• Communicate effectively with lenders and investors