Unconventional Ratios For Understanding Conventional Business

Introduction

In today’s dynamic economic landscape, businesses face various challenges that can lead to financial instability. To navigate these uncertainties effectively, it’s crucial to have robust tools for early crisis detection. One such tool is the analysis of key financial ratios. These ratios serve as vital indicators, offering insights into a company ‘ s financial health and potential vulnerabilities. In this article, we ‘ll delve into the significance of key financial ratios in spotting crises, empowering readers with essential knowledge to safeguard their financial interests. 

• CFO TO EBITDA 
• CONTINGENT LIABILITIES AS PERCENTAGE OF NET WORTH 
• CASH CONVERSION CYCLE 
• RETENTION RATE 
• GROWTH RATIOS 
• LOANS AND ADVANCES TO RELATED PARTIES AS A PERCENTAGE OF NET WORTH
• THE DEBT-SERVICE COVERAGE RATIO (DSCR)