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Income Statement Ratios
This weeks episode is the first part of our financial ratio series that we will be doing every few weeks. In this episode, we cover 5 critical financial ratios, all dealing with your company's ability to generate a profit.
The 5 ratios are:
Sales Growth – The rate your revenue is increasing year over year
Contribution Margin – The percentage left over to cover your fixed expenses
Break-Even – The number of units required to sell to make a profit
Gross Margin – The percentage of gross profit over sales
Profit Margin – The percentage of net profit over sales
Join us to learn how to use your income statement as a powerful tool in making financial decisions for your business.
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By Ryan Murray and Ethan Migliori
5
77 ratings
This weeks episode is the first part of our financial ratio series that we will be doing every few weeks. In this episode, we cover 5 critical financial ratios, all dealing with your company's ability to generate a profit.
The 5 ratios are:
Sales Growth – The rate your revenue is increasing year over year
Contribution Margin – The percentage left over to cover your fixed expenses
Break-Even – The number of units required to sell to make a profit
Gross Margin – The percentage of gross profit over sales
Profit Margin – The percentage of net profit over sales
Join us to learn how to use your income statement as a powerful tool in making financial decisions for your business.