What financial indicators are there for companies
The financial indicators can be used to determine the financial health of the company, but also to compare companies with each other. Without quantification, it is difficult to compare the turnover of one company with the #omzet from the other company. This is due to the fact that the companies may be operating in a different market, there is a different type of company, size or many other cases. For that reason, the key numbers have been invented. By the code number you can #bedrijven compare with each other because the #berekening is the same for each business.
The financial metrics
A distinction is made into four categories of financial indicators. The first two are about being able to pay off the debts, the third about generating income on the assets and the latter shows whether the invested money is actively deployed.
#Liquiditeit
Is there enough capital to be able to pay off all short-term debts (debts present in the company for less than one year).
- Net working capital: difference between current assets and short-term debt.
- Current Ratio: the ratio of current assets to short-term debt.
- Quick Ratio: See Current Ratio only stocks are considered.
- Gold balance sheet rules: Fixed assets and fixed parts (inventories and debtors) of current assets must be financed by equity or long-term debt.
#Solvabiliteit
Is there enough power to repay all long-term debts (debts are present in the enterprise for more than one year).
