Читать книгу Financial Management 101 - Angie Mohr - Страница 24

Okay, so you have chosen the important ratios you want your business to track and you are tracking them on a quarterly basis. In the third quarter, three of the ratios seem out of kilter. What do you do? How do you know what’s going wrong?

Here is a quick guide to the questions you need to ask yourself and your team if your ratios seem to be deteriorating.

Solvency or liquidity ratios:

• Do I have too much debt?

• Are my debt repayment terms too hard on cash flow?

• Am I getting behind on my payments to my suppliers?

Asset and debt management ratios:

• Am I buying too much inventory?

• Am I collecting my receivables on time?

• Can I stretch out my payables without causing harm to my supplier relationships?

Profitability ratios

• Are my expenses under control?

• Do I have a lot of excess cash in my account?

• Have my sales dropped and why?

After three or four quarters of tracking your ratios, you will have a much better understanding of your business: its cycles, its cash flow patterns, and its idiosyncrasies. Only once you understand your business on this level can you really start to grow!