Cash Ratio Explained: The Strictest Liquidity Test Your Balance Sheet Can Pass
Cash ratio equals cash and equivalents divided by current liabilities; 0.5-1.0 is the healthy zone for most small businesses.
#financial-ratios
Financial Ratios
Key financial ratios like ROA, ROE, and profitability metrics for measuring business performance
What Is a Classified Balance Sheet? Current vs. Non-Current Sections, What Each Subtotal Tells a Lender, and How to Build One From Your Trial Balance
A classified balance sheet sorts assets and liabilities into current and non-current sections — the subtotals behind working capital and the current ratio.
Vertical vs. Horizontal Analysis, Explained: How Common-Size Percentages Reveal Your Cost Structure While Trend Analysis Shows Where It Is Drifting
Common-size percentages show what each revenue dollar does; trend analysis shows where it is drifting — run both monthly to catch margin erosion early.
The Piotroski F-Score, Explained: Nine Binary Tests That Separate Strong Value Stocks From Value Traps
The Piotroski F-Score grades cheap stocks on nine yes-or-no tests of profitability, leverage, and efficiency: 8 or 9 signals strength, 0-2 signals a trap.
Gross Profit vs. Operating Profit vs. Net Profit: Which One Shows Where Your Money Goes?
Gross margin tests pricing, operating margin tests overhead, net margin tests financing and tax — read the three as a funnel to find where profit leaks.
The Burn Multiple, Explained: How Much Each Dollar of Growth Really Costs You
Burn multiple is net burn divided by net new ARR — under 1.5x marks fundable SaaS efficiency, while above 3x means growth destroys value.
Net Profit Margin vs. Gross Margin vs. Operating Margin: The Three Profitability Ratios Every Small Business Owner Should Track
Gross margin tests your pricing, operating margin tests your overhead, net margin tests the bottom line — track all three monthly to find the leak.
Gross Profit Margin vs Net Margin: Does Your Pricing Survive Your Overhead?
Gross margin tests your pricing; net margin tests the whole business — the gap between them shows whether pricing or overhead eats your profit.
How to Read Your Balance Sheet Without an Accounting Degree: Assets, Liabilities, Equity, and the 5-Minute Solvency Check
Assets minus liabilities equals equity — and three ratios (current, quick, debt-to-equity) tell you in five minutes whether your business is solvent.
Business Line of Credit vs. Equity Financing: How Each One Hits Your Books, Your Taxes, and Your Debt-to-Equity Ratio
A credit-line draw is a liability that raises your debt-to-equity ratio; equity cash lowers it. Weigh deductible interest against permanent dilution.
Cash Flow Coverage Ratio Explained: Can Your Business Actually Afford Its Debt?
Divide operating cash flow by annual debt payments: above 1.2 your business comfortably carries its debt, below 1.0 operations alone cannot cover it.
Financial Ratio Analysis for Small Businesses: Build a Dashboard That Shows Real Performance
Compare margins, liquidity, efficiency, and leverage together each month — trends and peer benchmarks reveal problems raw statements hide.