Applying Ratios to a Business

Applying Ratios to a Business

 Review the following Evaluating Business Performance: Small Business Case Studies video:

The video focuses on profitability, liquidity, efficiency, and  stability of 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.

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