Key Financial Metrics: Are They Driving Your Business Profit?
Financial metrics are important for businesses. They help measure and track financial health and
profitability
These metrics give insights into revenue, expenses, and cash flow.
Profitability ratios
show how much profit a company makes.
Liquidity ratios check if a company can pay its debts.
Efficiency ratios look at how well a company uses its resources.
Solvency ratios check if a company can handle its debts.
Important profitability metrics include
gross profit margin
and net profit margin.
Return on investment (ROI) and
EBITDA
are also crucial.
Digital tools
and software make the process easier.