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Financial Ratios: What They Say About Your Business

Sue Hine and, Dawn Thilmany (October, 2001)

Summary

Understanding your financial statements can be an important first step toward improving or continuing a successful business operation. In the first part of this fact sheet, we will present some important financial ratios, show how they are calculated, and discuss what they mean. Next we will demonstrate how these ratios can be used to tell a story about your business. Finally we will help to show you how to use your financial story in a proactive manner when approaching your banker.