As a business owner or finance executive, you should pay attention to the liquidity status of your business because it impacts the financial flexibility of your business to cater to everyday operations and settle urgent and unexpected needs without running out of cash.
If you must get quantifiable, valuable, and tangible data to propel your business forward, you must learn to focus and measure both financial and non-financial KPIs that align with your business goals, strategic priorities, and key drivers.
In this guide, you will get to understand three effective ways to monitor your business performance to ensure the attainment of your goals. Before we discuss these methods, let’s take a look at why it is so important to monitor your business’ performance.
Here in this article, we will look into the definition, importance, types of financial ratios, and best practices to enhance business decisions using the data generated from your financial ratio.