Week 5 Discussion 2
Applying Ratios to a BusinessReview the following Evaluating Business Performance: Small Business Case Studies video:
The video focuses on profitability, liquidity, efficiency, and stability of business. Given what you have learned about ratio analysis, choose one of the businesses from the video (Rose Chong Costumes, Anro’s Floor Maintenance, or John Osborne’s Gym and Squash Center) and identify two ratios that would be helpful for the owner of the business to monitor. Be sure to explain what the ratio would tell the owner, and how it can be improved for the business.
Hickman, K. A., Byrd, J. W., & McPherson, M. (2013). Essentials of finance [Electronic version]. Retrieved from https://content.ashford.edu /
Chapter 3: Financial Forecasting
Chapter 11: Financial Analysis: Evaluation of Corporate Performance
Sykes, A. (Producer &Director). (2006). Evaluating business performance: Small business case studies [Video file]. Retrieved from the Films On Demand database.
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