Productivity indicates that a company is using its resources well, an area that should be examined closely when analyzing a company. Revenue ratios are a good metric of productivity and efficiency.

Metrics may vary from company to company, but the mathematics are simple once you determine which ratios need to be analyzed. In this program, we look at four common revenue ratios: sales per customer, sales per employee, sales per cash register, and sales per unit of time.

The cost of goods sold ratio and the gross margin ratio are two very helpful indicators of a company's efficiency. They provide valuable information that can reveal trends, help you budget, and help you calculate product markup. In this program, we'll talk about these two important financial ratios. We'll discuss what they are, how to calculate them, and what they mean for your business.

Comparing your company's financial statements against other companies can benefit you in many ways. This information can help you develop your own company's goals or show you how you're progressing against industry standards. Whatever your reasons, it's important to know the best methods to compare companies. In this course, we'll discuss different types of ratio analyses that allow you to make those comparisons.