The Operating Cash Flow Ratio measures a company’s ability to cover current liabilities with cash generated from core operations. Unlike other ratios, it directly reflects operational efficiency and financial health. It uses cash flow statement data which exclude non-cash expenses

Net profit margin is a comprehensive measure of how much profit a business generates after all expenses. It is also often called the "bottom line" and is considered the ultimate profitability metric. This is because it represents the profit remaining after all operating and non-operating co

The current ratio compares a company's current assets to its current liabilities to assess short-term liquidity. Current assets, including cash, accounts receivable, and inventory, are compared to current liabilities, such as accounts payable. A ratio of less than one indicates potential liquidity issues that require immediate attention

In the complex world of business finance, understanding your numbers is crucial for long-term success. One of the most critical metrics you need to grasp is gross profit. However, many business owners need help knowing how to calculate it, what it means, and how to use it effectively.

Return on Sales (ROS) is a crucial financial metric that measures a company’s efficiency in generating profit from its revenue. It indicates the percentage of revenue that turns into operating profit, providing insights into the business's operational effectiveness.