Profit is king, as the saying goes. There are people who disagree with that adage, of course, some saying that cash and cash flow are more important (and too often ignored). But no one would disagree that you need to monitor your company’s profitability to ensure its financial health. There are several ratios you can look at that will help you evaluate whether your company can generate sales and control its expenses.
A Refresher on Return on Assets and Return on Equity
You need these to understand your company’s profitability.
April 04, 2016
New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.
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New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.