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Thursday, Dec. 22

Business Type - Business Profitability Formula, #108

Financial formulas or ratios are a valuable and easy way to interpret the numbers found in business profitability statements. Such analysis can help to answer critical questions such as whether the business is carrying excess debt or inventory, whether customers are paying according to terms, whether the operating expenses are too high and whether the company assets are being used properly to generate income. Generally, financial ratios are categorized into five types: liquidity,…

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