{"id":4548,"date":"2023-10-02T11:38:48","date_gmt":"2023-10-02T09:38:48","guid":{"rendered":"https:\/\/www.ban.co.za\/ban-clients\/?page_id=4548"},"modified":"2025-11-06T11:22:29","modified_gmt":"2025-11-06T09:22:29","slug":"interesting-financial-ratios-worth-knowing","status":"publish","type":"page","link":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/","title":{"rendered":"Interesting financial ratios worth knowing"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row full_width=&#8221;stretch_row_content&#8221; wpex_bg_slider_source=&#8221;custom&#8221; wpex_bg_slider_animation=&#8221;ken_burns&#8221; remove_bottom_col_margin=&#8221;true&#8221; wpex_bg_slider_images=&#8221;164&#8243; wpex_bg_slider_fade_duration=&#8221;4000&#8243; wpex_bg_slider_zoom=&#8221;1.1&#8243;][vc_column width=&#8221;1\/6&#8243;][\/vc_column][vc_column width=&#8221;2\/3&#8243;]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:50px;\"><\/div>[vc_row_inner content_placement=&#8221;middle&#8221;][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221; color=&#8221;on-accent&#8221; font_size=&#8221;38px&#8221; line_height=&#8221;normal&#8221;]Experience \u2022 Expertise \u2022 Ethics \u2022 Excellence[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;]<figure class=\"vcex-image vcex-module wpex-text-right\"><div class=\"vcex-image-inner wpex-relative wpex-inline-block\"><img width=\"9999\" height=\"847\" src=\"https:\/\/www.ban.co.za\/ban-clients\/wp-content\/uploads\/2021\/09\/BAN-HEX-PATTERN.svg\" class=\"vcex-image-img wpex-align-middle\" alt=\"Ban Hex Pattern\" loading=\"lazy\" decoding=\"async\" \/><\/div><\/figure>[\/vc_column_inner][\/vc_row_inner]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:50px;\"><\/div>[\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column css_animation=&#8221;fadeInLeftBig&#8221;]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:50px;\"><\/div>[vc_column_text]<strong>Interesting financial ratios worth knowing<\/strong><\/p>\n<p>It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make enough net profit to:<\/p>\n<ul>\n<li>Repay its debts, on time;<\/li>\n<li>Re-invest in more growth;<\/li>\n<li>Sustain operations, and<\/li>\n<li>Pay the owners enough to live their desired lifestyle.<\/li>\n<\/ul>\n<p>Understanding how a business makes money is different from just <a href=\"https:\/\/www.ban.co.za\/ban-clients\/services\/bookkeeping-and-accounting\/\">recording your financial transactions<\/a> or reading the <a href=\"https:\/\/www.ban.co.za\/ban-clients\/services\/financial-statements\/\">financial statements<\/a> or <a href=\"https:\/\/www.ban.co.za\/ban-clients\/services\/monthly-management-reports\/\">management accounts<\/a> prepared by your accountant as you would miss essential information.<\/p>\n<p><strong>What are financial ratios?<\/strong><\/p>\n<p>Financial ratios analyse your financial reports, either your monthly management accounts or annual financial statements that can reveal financial performance weaknesses and strengths beyond that of what financial statements and management accounts alone can bring to light.<\/p>\n<p>There are literally loads of financial ratios that businesses can track, however, we\u2019ll only be looking at those ratios that are well worth businesses knowing.<\/p>\n<p><strong>Why look at financial ratios for smaller businesses? <\/strong><\/p>\n<p>The term \u201cfinancial ratios\u201d can raise some uneasiness, even a tinge of trepidation amongst many business owners, believing it can be complex, frustrating to understand, excessive and an overkill for a small business, but that is not the case.<\/p>\n<p>Having a good accountant to prepare the ratios and explain it to you will go a long way in appeasing those unhelpful assumptions and bring about a newly found enthusiasm as you begin to focus on the key elements that drive a business to become and stay profitable for the long haul.<\/p>\n<p><a href=\"https:\/\/www.ban.co.za\/ban-clients\/services\/business-consulting-advisory\/\">Financial ratios<\/a> go beyond the balance sheet and income statement, which are helpful, but limited in insight as to how efficient your business is at financing itself, making a net profit, managing cash flows, and growing the wealth of the business. \u00a0Ratios also provide a warning sign before there is an indication that things are not going well, letting you know in advance what changes need to be made.<\/p>\n<p><strong>Liquidity<\/strong><\/p>\n<p>In a nutshell, liquidity is the measurement of a business\u2019s working capital that will provide either a positive or negative result.\u00a0 In other words, liquidity is the ability of a business to pay its short-term debts (current liabilities) when they become due, for example, suppliers, VAT, employees\u2019 taxes and other accounts payable using its short-term assets (current assets), for example, cash and customer amounts due. \u00a0When a business is having trouble paying employees, suppliers and covering other ordinary operating expenses, many business owners are under the incorrect assumption that this is a cash flow problem, but it is not, it is more serious than a cash flow issue, the business has liquidity difficulties, and that leads to bigger problems.<\/p>\n<p>There are three worthwhile liquidity ratios to know:<\/p>\n<p><strong>#1 Current ratio (also known as working capital ratio)<\/strong><\/p>\n<p>The current ratio determines whether your business can pay its short-term debts with its current assets.<\/p>\n<p>Ideally, the ratio should be between the 1,5 : 1 to 3,0 : 1 range. (that is between, 1,5 to 3).<\/p>\n<p>If the current ratio of a business is higher than 1, this means that the business has positive working capital (its current assets are higher than its current liabilities).<\/p>\n<p><strong>#2 Acid Test ratio (also known as Quick ratio)<\/strong><\/p>\n<p>Another liquidity test is the acid test ratio which is similar to the current ratio in that it also determines whether the business can pay its debts when they become due, and is used far more commonly than the current ratio.<\/p>\n<p>The reason why this ratio is more frequently used is that it looks at current assets that can be converted to cash quickly to pay debt, for example, cash and debtors (amounts owing by customers).<\/p>\n<p>The formula for the quick ratio excludes inventory and prepaid expenses from the current assets because it can take time to sell inventory and turn it into cash and prepaid expenses cannot be converted into cash as the cash has already been expended.<\/p>\n<p>If the ratio is higher than 1, this means that the business is in a good financial position.<strong>\u00a0<\/strong><\/p>\n<p><strong>#3 Cash flow<\/strong><\/p>\n<p>Cash flow is not the same as liquidity and neither is cash flow a ratio or percentage ratio. However, it is important to understand the difference between the two.\u00a0 Generally, liquidity is the ability of the business to pay its current debts (liabilities) using its current assets.\u00a0 Cash flow on the other hand, refers to cash going into and out of the business\u2019s bank account.\u00a0 Cash flow is the timing difference in the sales cycle &#8211; it is the difference between when cash is paid to suppliers for goods or services and the timing difference between when those goods and services are sold and cash is received by the customer.<\/p>\n<p>How a business manages liquidity and cash flow can impact on its short-term operations and ultimately, its survival.<\/p>\n<p>The reasons for a business\u2019s positive or negative cash flow are determined, amongst calculating other ratios, in a cash flow statement. The cash flow statement provides information on where funds were received from and where funds were expended on.<\/p>\n<p>The cash flow statement takes the opening bank balance at the beginning of the month less the closing bank balance at the end of the month and simply analyses the movement of cash in and out of the bank for that month, for example, purchase of fixed assets, increase in inventory (outflow of cash), decrease in supplier (outflow of cash) and increase in debtors (more customers owning the business money = outflow of cash).<\/p>\n<p><strong>Working capital margin<\/strong><\/p>\n<p>The working capital margin calculates the percentage of working capital (net current assets) that the business is invested in to generate each rand of sales.<\/p>\n<p>Net current assets = (current assets \u2013 current liabilities) \u2013 also known as working capital.<\/p>\n<p>For example, if sales are R 180\u00a0000 and the average inventory and accounts receivable is R26\u00a0250 and the average accounts payable to suppliers is R18\u00a0000, the percentage of sales that has not been realised as cash is 4,6%<\/p>\n<p>(R26\u00a0250 current assets \u2013 R18\u00a0000 current liabilities)\/R180\u00a0000 sales x 100<\/p>\n<p>Working capital margin = 4.6%<\/p>\n<p>This means that for R180\u00a0000 of sales, 4.6% of those sales are invested in working capital. The lower the working capital margin is the less need the business has for having to obtain financing as they make efficient use of working capital.<\/p>\n<p><strong>Profitability<\/strong><\/p>\n<p>Liquidity and profitability are not the same thing. Profitability ratios assess a business\u2019s ability to earn profits from its sales and operations or shareholders equity. It measures the business\u2019s ability to convert sales into profits so that it can generate funds to reinvest or replace capital equipment, repay its long-term debts, for example, financing of machinery, \u00a0and invest in growth of the business.<\/p>\n<p><strong>#1 Gross profit percentage<\/strong><\/p>\n<p>As a business can likely sell products or services with varying gross profit margins, this is the most important ratio percentage to determine how much on average it costs to sell a product or deliver a service so that there is enough profit to cover overheads and repay long-term debt.<\/p>\n<p>Gross profit is expressed as a ratio percentage and measures all products and services (cost of sales) as a percentage of sales.\u00a0 Gross profit is the profit after subtracting the cost of goods or services from sales, but excludes expenses, such as rent, telephones and so on. \u00a0In a service industry, the cost of services are the salaries and wages and employee benefits paid to employees that directly generate sales, so this would not include a receptionist for instance.<\/p>\n<p>(R250\u00a0000 sales &#8211; R170\u00a0000 cost of sales = R80\u00a0000 gross profit \/sales R250000 x 100)<\/p>\n<p>Gross profit percentage = 32%<\/p>\n<p><strong>#2 Break-even turnover<\/strong><\/p>\n<p>Break-even turnover is the minimum sales that a business must reach to pay for its overheads (expenses, including the owner\u2019s salary).\u00a0 It is a sales level that the business will neither make a net profit or a net loss.\u00a0 Importantly, although this level of sales will cover expenses, it falls short of the level it needs to repay its long-term liabilities.<\/p>\n<p>(R70\u00a0000 expenses \/ 32% gross profit percentage)<\/p>\n<p>Break-even turnover = R218 750<\/p>\n<p><strong>#3 Profitability ratio<\/strong><\/p>\n<p>This is an important ratio because a business needs profits to reinvest in capital equipment, to repay long-term debt and to fund future growth.\u00a0 A return on sales that is less than South Africa\u2019s CPI index is a concern because reinvesting in capital equipment, financing rates and funding growth are all linked to inflation. Ultimately, business usually needs at least 5% above the CPI index.<\/p>\n<p>This percentage ratio calculates the net profit before tax as a percentage of sales. \u00a0The higher this value, the better. An increasing value indicates better control of maintaining gross profit margins and percentage, and a decreasing value indicates too low selling prices or worse control of costs.<\/p>\n<p>Net profit = (profit after deducting cost of sales and expenses from sales) expressed as a percentage over sales.<\/p>\n<p>(R250\u00a0000 sales &#8211; R170\u00a0000 cost of sales \u2013 R70\u00a0000 expenses = R10\u00a0000 net profit \/ sales x 100)<\/p>\n<p>Profitability ratio percentage = 4%<\/p>\n<p><strong>How <a href=\"https:\/\/www.ban.co.za\/ban-clients\/services\/\">BAN<\/a> can help<\/strong><\/p>\n<p>Most small business owners blame their problems on \u201cpoor cash flow\u201d.\u00a0 If one understands the ratios above, one can easily determine that the reason is very seldom a problem with cash flow, but rather bigger problems elsewhere in the business.<\/p>\n<p>These are just a few of the key financial ratios that are essential to quickly evaluate your business, as by tracking this over time through management account reports, a <a href=\"https:\/\/www.ban.co.za\/ban-clients\/\">Business Accounting Network<\/a> accountant can notice risks before they become a big problem and advise what needs to be done to improve your business\u2019s performance and bottom line.<\/p>\n<p>Ask your <a href=\"https:\/\/www.ban.co.za\/ban-clients\/our-people\/\">BAN accountant <\/a>to prepare financial ratios to truly analyse the health of your business that will help identify gains and problems before they spiral out of control.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\n<h3 class=\"theme-heading border-bottom social-share-title\"><span class=\"text\">Share This<\/span><\/h3>\n[\/vc_column_text]<div class=\"vcex-spacing wpex-w-100 wpex-clear\" style=\"height:10px;\"><\/div>\t<div class=\"vcex-social-share vcex-module\">\n\t\t\t\t<div class=\"wpex-social-share style-flat position-horizontal wpex-mx-auto wpex-print-hidden\" data-target=\"_blank\" data-source=\"https%3A%2F%2Fwww.ban.co.za%2Fban-clients%2F\" data-url=\"https%3A%2F%2Fwww.ban.co.za%2Fban-clients%2Finteresting-financial-ratios-worth-knowing%2F\" data-title=\"Interesting financial ratios worth knowing\" data-summary=\"Experience%20%E2%80%A2%20Expertise%20%E2%80%A2%20Ethics%20%E2%80%A2%20Excellence\" data-email-subject=\"I wanted you to see this link\" data-email-body=\"I wanted you to see this link https%3A%2F%2Fwww.ban.co.za%2Fban-clients%2Finteresting-financial-ratios-worth-knowing%2F\">\n\t\t\t\n\t<ul class=\"wpex-social-share__list wpex-m-0 wpex-p-0 wpex-list-none wpex-flex wpex-flex-wrap wpex-gap-5\">\t\t\t<li class=\"wpex-social-share__item wpex-m-0 wpex-p-0 wpex-inline-block\">\n\t\t\t\t\t\t\t\t\t<a href=\"#\" role=\"button\" class=\"wpex-social-share__link wpex-social-share__link--linkedin wpex-linkedin wpex-flex wpex-items-center wpex-justify-center wpex-no-underline wpex-gap-10 wpex-duration-150 wpex-transition-colors wpex-social-bg\" aria-label=\"Share on LinkedIn\">\n\t\t\t\t<span class=\"wpex-social-share__icon\"><span class=\"wpex-icon\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M100.3 448H7.4V148.9h92.9zM53.8 108.1C24.1 108.1 0 83.5 0 53.8a53.8 53.8 0 0 1 107.6 0c0 29.7-24.1 54.3-53.8 54.3zM447.9 448h-92.7V302.4c0-34.7-.7-79.2-48.3-79.2-48.3 0-55.7 37.7-55.7 76.7V448h-92.8V148.9h89.1v40.8h1.3c12.4-23.5 42.7-48.3 87.9-48.3 94 0 111.3 61.9 111.3 142.3V448z\"\/><\/svg><\/span><\/span>\t\t\t\t\t\t<span class=\"wpex-social-share__label wpex-label\">LinkedIn<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t<\/li>\n\t\t\t\t\t<li class=\"wpex-social-share__item wpex-m-0 wpex-p-0 wpex-inline-block\">\n\t\t\t\t\t\t\t\t\t<a href=\"#\" role=\"button\" class=\"wpex-social-share__link wpex-social-share__link--twitter wpex-twitter wpex-flex wpex-items-center wpex-justify-center wpex-no-underline wpex-gap-10 wpex-duration-150 wpex-transition-colors wpex-social-bg\" aria-label=\"Post on X\">\n\t\t\t\t<span class=\"wpex-social-share__icon\"><span class=\"wpex-icon\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M389.2 48h70.6L305.6 224.2 487 464H345L233.7 318.6 106.5 464H35.8L200.7 275.5 26.8 48H172.4L272.9 180.9 389.2 48zM364.4 421.8h39.1L151.1 88h-42L364.4 421.8z\"\/><\/svg><\/span><\/span>\t\t\t\t\t\t<span class=\"wpex-social-share__label wpex-label\">Twitter<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t<\/li>\n\t\t\t\t\t<li class=\"wpex-social-share__item wpex-m-0 wpex-p-0 wpex-inline-block\">\n\t\t\t\t\t\t\t\t\t<a href=\"#\" role=\"button\" class=\"wpex-social-share__link wpex-social-share__link--facebook wpex-facebook wpex-flex wpex-items-center wpex-justify-center wpex-no-underline wpex-gap-10 wpex-duration-150 wpex-transition-colors wpex-social-bg\" aria-label=\"Share on Facebook\">\n\t\t\t\t<span class=\"wpex-social-share__icon\"><span class=\"wpex-icon\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M512 256C512 114.6 397.4 0 256 0S0 114.6 0 256C0 376 82.7 476.8 194.2 504.5V334.2H141.4V256h52.8V222.3c0-87.1 39.4-127.5 125-127.5c16.2 0 44.2 3.2 55.7 6.4V172c-6-.6-16.5-1-29.6-1c-42 0-58.2 15.9-58.2 57.2V256h83.6l-14.4 78.2H287V510.1C413.8 494.8 512 386.9 512 256h0z\"\/><\/svg><\/span><\/span>\t\t\t\t\t\t<span class=\"wpex-social-share__label wpex-label\">Facebook<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t<\/li>\n\t\t\t\t\t<li class=\"wpex-social-share__item wpex-m-0 wpex-p-0 wpex-inline-block\">\n\t\t\t\t\t\t\t\t\t<a href=\"#\" role=\"button\" class=\"wpex-social-share__link wpex-social-share__link--email wpex-email wpex-flex wpex-items-center wpex-justify-center wpex-no-underline wpex-gap-10 wpex-duration-150 wpex-transition-colors wpex-social-bg\" aria-label=\"Share via Email\">\n\t\t\t\t<span class=\"wpex-social-share__icon\"><span class=\"wpex-icon\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M48 64C21.5 64 0 85.5 0 112c0 15.1 7.1 29.3 19.2 38.4L236.8 313.6c11.4 8.5 27 8.5 38.4 0L492.8 150.4c12.1-9.1 19.2-23.3 19.2-38.4c0-26.5-21.5-48-48-48H48zM0 176V384c0 35.3 28.7 64 64 64H448c35.3 0 64-28.7 64-64V176L294.4 339.2c-22.8 17.1-54 17.1-76.8 0L0 176z\"\/><\/svg><\/span><\/span>\t\t\t\t\t\t<span class=\"wpex-social-share__label wpex-label\">Email<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t<\/li>\n\t\t\t\t\t<li class=\"wpex-social-share__item wpex-m-0 wpex-p-0 wpex-inline-block whatsapp\">\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/wa.me\/?text=https%3A%2F%2Fwww.ban.co.za%2Fban-clients%2Finteresting-financial-ratios-worth-knowing%2F\" role=\"button\" class=\"wpex-social-share__link wpex-social-share__link--whatsapp wpex-whatsapp wpex-flex wpex-items-center wpex-justify-center wpex-no-underline wpex-gap-10 wpex-duration-150 wpex-transition-colors wpex-social-bg\" aria-label=\"whatsapp\">\n\t\t\t\t<span class=\"wpex-social-share__icon\"><span class=\"wpex-icon\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M380.9 97.1C339 55.1 283.2 32 223.9 32c-122.4 0-222 99.6-222 222 0 39.1 10.2 77.3 29.6 111L0 480l117.7-30.9c32.4 17.7 68.9 27 106.1 27h.1c122.3 0 224.1-99.6 224.1-222 0-59.3-25.2-115-67.1-157zm-157 341.6c-33.2 0-65.7-8.9-94-25.7l-6.7-4-69.8 18.3L72 359.2l-4.4-7c-18.5-29.4-28.2-63.3-28.2-98.2 0-101.7 82.8-184.5 184.6-184.5 49.3 0 95.6 19.2 130.4 54.1 34.8 34.9 56.2 81.2 56.1 130.5 0 101.8-84.9 184.6-186.6 184.6zm101.2-138.2c-5.5-2.8-32.8-16.2-37.9-18-5.1-1.9-8.8-2.8-12.5 2.8-3.7 5.6-14.3 18-17.6 21.8-3.2 3.7-6.5 4.2-12 1.4-32.6-16.3-54-29.1-75.5-66-5.7-9.8 5.7-9.1 16.3-30.3 1.8-3.7 .9-6.9-.5-9.7-1.4-2.8-12.5-30.1-17.1-41.2-4.5-10.8-9.1-9.3-12.5-9.5-3.2-.2-6.9-.2-10.6-.2-3.7 0-9.7 1.4-14.8 6.9-5.1 5.6-19.4 19-19.4 46.3 0 27.3 19.9 53.7 22.6 57.4 2.8 3.7 39.1 59.7 94.8 83.8 35.2 15.2 49 16.5 66.6 13.9 10.7-1.6 32.8-13.4 37.4-26.4 4.6-13 4.6-24.1 3.2-26.4-1.3-2.5-5-3.9-10.5-6.6z\"\/><\/svg><\/span><\/span>\t\t\t\t\t\t<span class=\"wpex-social-share__label wpex-label\">Whatsapp<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t<\/li>\n\t\t<\/ul>\n\t\t\t<\/div>\n\t\t\t<\/div>\n[\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row full_width=&#8221;stretch_row_content&#8221; wpex_bg_slider_source=&#8221;custom&#8221; wpex_bg_slider_animation=&#8221;ken_burns&#8221; remove_bottom_col_margin=&#8221;true&#8221; wpex_bg_slider_images=&#8221;164&#8243; wpex_bg_slider_fade_duration=&#8221;4000&#8243; wpex_bg_slider_zoom=&#8221;1.1&#8243;][vc_column width=&#8221;1\/6&#8243;][\/vc_column][vc_column width=&#8221;2\/3&#8243;][vc_row_inner content_placement=&#8221;middle&#8221;][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221; color=&#8221;on-accent&#8221; font_size=&#8221;38px&#8221; line_height=&#8221;normal&#8221;]Experience \u2022 Expertise \u2022 Ethics \u2022 Excellence[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][\/vc_column_inner][\/vc_row_inner][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column css_animation=&#8221;fadeInLeftBig&#8221;][vc_column_text]Interesting financial ratios worth knowing It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make enough net profit&hellip;<\/p>\n","protected":false},"author":7,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-4548","page","type-page","status-publish","hentry","entry","no-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Interesting financial ratios worth knowing<\/title>\n<meta name=\"description\" content=\"It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Interesting financial ratios worth knowing\" \/>\n<meta property=\"og:description\" content=\"It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/\" \/>\n<meta property=\"og:site_name\" content=\"BAN Clients\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-06T09:22:29+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/interesting-financial-ratios-worth-knowing\\\/\",\"url\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/interesting-financial-ratios-worth-knowing\\\/\",\"name\":\"Interesting financial ratios worth knowing\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/#website\"},\"datePublished\":\"2023-10-02T09:38:48+00:00\",\"dateModified\":\"2025-11-06T09:22:29+00:00\",\"description\":\"It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make...\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/interesting-financial-ratios-worth-knowing\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/interesting-financial-ratios-worth-knowing\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/interesting-financial-ratios-worth-knowing\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Interesting financial ratios worth knowing\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/#website\",\"url\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/\",\"name\":\"BAN Clients\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/#organization\",\"name\":\"BAN Clients\",\"url\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/BAN-LOGO-BLUE2.png\",\"contentUrl\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/wp-content\\\/uploads\\\/2021\\\/10\\\/BAN-LOGO-BLUE2.png\",\"width\":1080,\"height\":484,\"caption\":\"BAN Clients\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ban.co.za\\\/ban-clients\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Interesting financial ratios worth knowing","description":"It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/","og_locale":"en_US","og_type":"article","og_title":"Interesting financial ratios worth knowing","og_description":"It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make...","og_url":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/","og_site_name":"BAN Clients","article_modified_time":"2025-11-06T09:22:29+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/","url":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/","name":"Interesting financial ratios worth knowing","isPartOf":{"@id":"https:\/\/www.ban.co.za\/ban-clients\/#website"},"datePublished":"2023-10-02T09:38:48+00:00","dateModified":"2025-11-06T09:22:29+00:00","description":"It is worth knowing the important financial ratios in your business, because, to be successful, a business must make money. It must make...","breadcrumb":{"@id":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.ban.co.za\/ban-clients\/interesting-financial-ratios-worth-knowing\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.ban.co.za\/ban-clients\/"},{"@type":"ListItem","position":2,"name":"Interesting financial ratios worth knowing"}]},{"@type":"WebSite","@id":"https:\/\/www.ban.co.za\/ban-clients\/#website","url":"https:\/\/www.ban.co.za\/ban-clients\/","name":"BAN Clients","description":"","publisher":{"@id":"https:\/\/www.ban.co.za\/ban-clients\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ban.co.za\/ban-clients\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.ban.co.za\/ban-clients\/#organization","name":"BAN Clients","url":"https:\/\/www.ban.co.za\/ban-clients\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ban.co.za\/ban-clients\/#\/schema\/logo\/image\/","url":"https:\/\/www.ban.co.za\/ban-clients\/wp-content\/uploads\/2021\/10\/BAN-LOGO-BLUE2.png","contentUrl":"https:\/\/www.ban.co.za\/ban-clients\/wp-content\/uploads\/2021\/10\/BAN-LOGO-BLUE2.png","width":1080,"height":484,"caption":"BAN Clients"},"image":{"@id":"https:\/\/www.ban.co.za\/ban-clients\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/pages\/4548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/comments?post=4548"}],"version-history":[{"count":8,"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/pages\/4548\/revisions"}],"predecessor-version":[{"id":4748,"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/pages\/4548\/revisions\/4748"}],"wp:attachment":[{"href":"https:\/\/www.ban.co.za\/ban-clients\/wp-json\/wp\/v2\/media?parent=4548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}