Last week, we introduced a few financial ratios that you can use on your balance sheet and income statement. This week, we'll add to that list! Gross Margin Gross Margin = Gross Profit / Net Sales When You Use It: The Gross Margin Ratio gives you a percentage of sales dollars available after you've deducted the cost of merchandise. If yours looks particularly high or low, remember that this varies by industry and by company! Profit Margin (after Tax) Profit Margin = Net Incom

Financial ratios are a powerful tool to help you assess your small business finances. They can measure your operational efficiency compared to competition, profitability, financial stability, and more. Today, we share this cheat sheet of must-have financial ratios to keep in your pocket! Financial Ratios on the Balance Sheet Working Capital Working Capital = Current Assets - Current Liabilities When You Use It: Use the Working Capital ratio when you want to find if the compan