Other Important Things to Look for

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Other Important Things to Look for

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Each financial statement will provide a clear picture of the company in general, an overview of accounting policies and an explanation of the company’s financial statement items including other important information. However, this report will be meaningless without understanding the aspect ratio in it. The type of aspect ratio that needs to be understood is

  • Current Ratio
  • Debt to Equity Ratio
  • Quick Ratio
  • Total Debt to Total Assets
  • Net Profit Margin
  • Operating Profit Margin
  • Return on Assets (ROA)
  • Return on Equity (ROE)
  • Asset Turnover
  • Inventory Turnover
  • Receivable Turnover
  • Earning Per Share (EPS)
  • Accounts Payable Turnover
  • Book Value
  • Price Earning Ratio (PER)
  • Price to Book Value (PBV)

From all of this discussion, we can be sure that the existence of a financial statement is one of the important things that must be considered by the company if you want to know your own business or attract potential investors. A good financial report, of course, does not just include the numbers in it.

But it must also have conformity with generally accepted accounting standards. To facilitate the process of recording accounting and streamlining the company’s financial management, it is better if using an online accounting software Journal. The journal has ISO / IEC 27001 certified safety standards.

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