Every dollar you spend should deliver returns so you can grow your business, pay your employees and still make a profit. But how can you be sure that’s the case?
According to Stéphanie Bourret, Manager, Technologies Group at BDC, your bank account alone tells only part of the story.
“You need objective ways to measure the performance of your business,” she says. “Financial ratios give you that.”
Financial ratios are calculations based on the information in your financial statements. Bourret lists a few key ratios every business owner should track: