#financial-analysis
Analyze financial data and metrics to evaluate business performance and health
Understand the difference between gross and net across income, profit, pay, and revenue. Includes formulas, real-world examples, industry benchmarks, and common mistakes to avoid when analyzing your business finances.
Learn what liabilities are in accounting, the difference between current, non-current, and contingent liabilities, key financial ratios for analyzing debt, and practical strategies to manage your business obligations effectively.
Learn the most important financial ratios every business owner should track, including liquidity, leverage, profitability, and efficiency ratios—with formulas, examples, benchmarks, and practical tips for using them effectively.
Learn what operating expenses are, how to calculate the operating expense ratio, the difference between OpEx and CapEx, where operating expenses appear on financial statements, tax implications, and eight practical strategies to reduce your operating costs.
Learn what a profit and loss statement is, how to read and create one for your small business, understand the difference between single-step and multi-step formats, calculate key profitability ratios, and avoid common P&L mistakes that could be costing you money.
Return on Assets (ROA) shows how efficiently a company uses its assets to generate profit.
Learn what a statement of retained earnings is, how to prepare one step by step, understand the retained earnings formula, calculate the retention ratio, avoid common mistakes like confusing retained earnings with cash, and know what negative retained earnings mean for your business.
Learn what variable costs are, how to calculate variable cost per unit and contribution margin, real-world examples across industries, the difference between variable and fixed costs, and seven proven strategies to reduce variable costs and boost profitability.
Learn what working capital is, how to calculate the working capital ratio, understand the cash conversion cycle, identify when negative working capital is a problem, and discover seven strategies to improve your working capital and keep your business financially healthy.
Calculate monthly year-over-year growth with a free worksheet. Compare exact amounts, handle missing or negative baselines, and export results to CSV.
Accounts receivable turnover equals net credit sales divided by average AR — calculate it with examples, read the benchmarks, and see what a slow ratio costs.
Learn what the accounts receivable turnover ratio is, how to calculate it with the formula and real examples, what a good ratio looks like by industry, and 8 practical ways to improve your collections and cash flow.
