Applying Ratios to a Business. Access the Evaluating Business Performance: Small Business Case Studies video in your online course.
The video focuses on profitability, liquidity, efficiency, and stability of the 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.