How can successful business owners determine if their company is financially healthy or heading toward trouble? Financial statements are a source of information but interpreting them on their own can ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

Financial statement analysis is useful in anticipation of future conditions and planning for actions that will improve the firm's future performance. Financial ratios are designed to help you evaluate ...

Profitability ratios are metrics that express how efficiently a company uses its resources to generate profit.

Cost and profitability management is at the heart of business decision-making and effective strategy. There are many factors to consider for effective profitability management, including selecting an ...

Do you follow generally accepted accounting principles? GAAP tells the story of your business this way: Sales minus expenses equals profit. However, Mike Michalowicz's book Profit First argues that we ...

David Gorton, CPA, has 5+ years of professional experience in accounting. He teaches accounting, helping promote financial education and awareness. David Kindness is a Certified Public Accountant (CPA ...

Investing is really about one thing, and one thing only: the ability to participate alongside the profit generating ability of a business. With profits at the very foundation of investing, it means ...