Every week, I spend time reviewing the statistics for The Virtual CFO blog. One statistic that is of particular interest to me is the referrals I get from search engines such as Google and MSN’s Windows Live.
I have been averaging two to three click-throughs (when a person clicks on a link to come to this blog) a day from searches for small business financial statement related searches (i.e., balance sheet, income statement, etc.). This lets me know that there are readers (and prospective readers) that have an interest in small business financial statements and how they can be used to help understand the performance of a business,
Because of this, I’ve decided to start a new series on financial statement ratio analysis. Financial ratios are derived using figures from the financial statements. The advantage to using financial ratios is that they can be used to compare your company with competitors in the same industry, as well as show whether your company’s performance is improving or fading.
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