Ratios

Revenue - cost of sales

Revenue + cost of sales

Revenue - expenses

Revenue + expenses

Revenue / fixed costs

Revenue - cost of sales

Gross profit - expenses

Gross profit + fixed costs

Whether the business has enough cash to pay their bills

Whether the business will make a profit

Whether the business will survive

Whether people should invest in the business

Gross profit / Revenue

(Gross profit / Revenue) x 100

(Gross profit + Revenue) x 100

Gross Profit - 100

(Net profit / Revenue) x 100

Net profit + Revenue

Net profit / Revenue

(Expenses - Revenue) x 100

Current assets + Current liabilities

Current assets / Current liabilities

(Current assets - Stock) / Current liabilities

((Current assets - Stock) / Current liabilities) x 100

Exactly 1 : 1

Exactly 1.5 : 1

Between 1 and 5 : 1

Between 1.5 and 2 :1

(Current assets - stock) / current liabilities

Current assets / current liabilities

(Current assets - cash) / current liabilities

(Current assets - stock) / current liabilities x 100

Between 1.5 and 2 :1

1 : 1

3 : 1

0.5 : 1

Raise prices

Find a cheaper supplier of materials

Reduce advertising

Pay less overtime to workers