Tag: financial ratios

  • What is a debit to equity ratio and why do I need to understand it?

    What is a debit to equity ratio and why do I need to understand it?

    Simply put, the debt to equity ratio (D/E) compares a company’s total debt to total equity. It is calculated as follows: D/E ratio = Total Liabilities/Shareholders Equity. It is a measurement of whether the company can cover its debt and an indication of how leveraged the company is. The higher the ratio, the more difficult it […]

  • What is the financial health status of your business?

    What is the financial health status of your business?

    Many businesses operate partially in the ‘financial dark’. They obtain new clients, pay their bills, collect receivables and assume the business is healthy.  Once a year, they meet with their accountant and review their financial statements and performance and often times find they are not as healthy as they thought. How can you manage your […]

  • Fall in Love with Finance Series– Staying out of the weeds.

    Fall in Love with Finance Series– Staying out of the weeds.

    Sometime when I ask my accountant for his thoughts on a financial issue, he starts giving me a detailed explanation – something I usually don’t want. He’s really not trying to get under my skin, he’s just trying to give me a complete answer. He’s very passionate about his work and enjoys discussing some of […]