How is your Business Doing?

A common question only an Accountant with many clients in the same industry could answer.  

Financial Ratios can compare your business with your competitors IF your competitor would give you their financial statements.  Compare-Biz seeks business' that operate in the same State/Province, in the same industry, with similar employee size and do a side by side comparison to show you how to improve  your business,

No company wants to disclose their financial facts unless they are anonymous and can improve their bottom line.  

 Compare-Biz will give every company anonymous disclosure that even a trade association will not provide.

Forbes - How Does Your Business Compare With Others? 

The Census Bureau’s survey found that among the 5.5 Million firms with paid employees ...

19 % were losing money and 17 % were only breaking even.

The most important Financial Ratios are

1. Working Capital Ratio 

2. Quick Ratio 

3. Earnings per Share (EPS) 

4. Price-Earnings (P/E) Ratio

5. Debt-Equity Ratio 

6. Return on Equity (ROE)

1. Working Capital Ratio - The company's ability to pay its current liabilities with its current assets within a year. 

2. Quick Ratio - this acid test, subtracts inventories from current assets, before dividing that figure into liabilities.

3. Earnings per Share (EPS) -  analysts divide net income by number of common shares outstanding during the year.

4. Price-Earnings (P/E) Ratio - the share price divided by EPS to obtain the P/E ratio.

5. Debt-Equity Ratio - calculated by adding long and short-term debt divided by the book value of shareholders' equity.

6. Return on Equity (ROE) - net earnings (after taxes), subtracting preferred dividends, and dividing the result by common equity dollars in the company.