Financial Statement and Ratio
Leaders Analyze The Numbers

Financial statement and ratio analysis training begins now. The journey into the world of small business finance can be very exciting and empowering if you have the right knowledge and training.

If you monitor the financials on a regular basis and compare it to industry financial ratios, you'll gain powerful insight into how effectively you are managing your business.

Lenders also like to evaluate your financial statement to assess potential risk based on several sets of ratios.

Keep in mind that every ratio is simply an indicator. Only YOU know the entire story about your business.

When your lender looks at a particular ratio and perceives a potential problem - or asks for a clarification, she will look to you for the answer to her questions.

There may be a perfectly legitimate and proper reason for any ratio to appear “off”, compared to industry financial ratios.

Only by you understanding your business and being able to speak the financial language, will you be able to respond with authority on the subject. We are going to help you with that!

So Let’s Get Started!

The (SBA)Small Business Administration provides a wealth of knowledge and insight for its readers. The problem is, there is SO much information, sometimes it is easy to get lost. So stick with us and we will lead you though this little maze and get you exactly what you need to be able to better read and understand a financial statement and ratio analysis.

Let’s take a short self-assessment to see what you know, or don’t know. Don’t worry, it is very short. Just be honest and answer the questions on a piece of paper as you review each section of the list. Please don’t leave any questions blank, take your time to really think through your responses.

Click here to find out if entrepreneurship is for you? The above self-assessment is just for your information. Now you have a better idea of where you are and how much you need to learn to become more proficient at reading a financial statement and ratio analysis.

Next, take some time to take a Free Online Entrepreneurship Coarse offered by the Small Business Association.

The SBA also has a wonderful tutorial that will guide you through the key areas of your financials.

As we said earlier, learning key financial information is fairly straightforward – not rocket science by any stretch of the imagination. It just takes some time and motivation. We KNOW you can learn this skill!

The following links go directly to the tutorial pages on the SBA web site. Once you have completed the tutorial, you will have a much better understanding of how to effectively utilize a financial statement and ratio analysis.

We suggest you review the tutorial in the following order so that you get the most out of your time here:

Financials – Part 1 - Balance Sheet Explained Free Form!
Financials – Part 2 – Income Statement Explained Free Form!
Financials – Part 3 – Cash Flow Statement Free Form!
Financial Statement and Ratio Analysis – Spend some time here – this is important! - Financial Statement and Ratio Analysis

NOTE: Some additional financial statement and ratio modules are currently in development at the SBA. When new modules are available, we will have the links here for our visitors convenience.

Financial statement and ratio analysis is an invaluable skill for anyone to learn. You can utilize this knowledge to make better decisions, which will minimize your risk and maximize the profitability of your business.

In conclusion to our discussion on financial statement and ratio analysis, you now have several tools and resources as you begin your journey toward becoming a true expert on your business.

We're constantly on the lookout for highly effective financial analysis tools and resources that we can recommend to our readers. Share your own helpful hints and tips here.

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