

How financially healthy is your business? This template will help you decide.
Financial ratios are measurements that bankers, potential investors, financial analysts and creditors use to assess your business’s financial condition. Ratios assess four different aspects of your business: liquidity, operations, profitability and working capital.
In order to complete the spreadsheet, you’ll need the past three years' financial statements for your business as well as your current year-to-date financial statements. Once you’ve input the information, compare your current business finances to those of past years. Look for significant changes in dollar values; in your business’s assets, liabilities and expenses; and in your financial ratios.
Regularly reviewing your financial ratios provides insights into your business’s financial situation and helps you keep tabs on its financial health.
If you need help understanding financial ratios, connect with a SCORE mentor online or in your community to get free, personalized advice.
Copyright © 2023 SCORE Association, SCORE.org
Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.