Have you wanted to know how your business compares to your competitors?
We are able to offer clients a comprehensive business benchmarking report by using Ratio Analysis. Find out how well your business is performing and compare your results with similar businesses.
Ratio analysis is an excellent tool for determining the overall financial condition of your business. Think of it as a way of "taking the temperature" of your company. It puts the information from your financial statements into perspective, helping to spot whether your business is at risk of insolvency or whether other negative financial patterns threaten the health of your firm.
Ratios are also very useful for making quick comparisons between your business and other businesses in your industry. Banks and investors use them to help decide whether a business is a good credit or investment risk. Managers look at ratios to monitor operations and determine whether or not the company is running efficiently. For example, ratios can indicate whether a business is carrying a dangerous amount of debt, holding too much inventory, or not collecting accounts receivable quickly enough.
One of the keys to using ratios is that you need a baseline, something to compare them with. Usually, you would be comparing your firm’s ratios to the median for your industry or with your own ratios for the same period. All the necessary source data from the many different ANZSIC (Australia and New Zealand Standard Industrial Classification) codes has been compiled together to give fast, easy to read and accurate ratio comparisons.
Click here to see an example of our Benchmark Report. Please note this is an abridged version of the report.
We can work together to increase your profitability.
Contact us for more information.