Key ratios are used to see how a company is doing – a diagnose. Based on these features we can take the necessary measures getting the business running smoothly or optimizing the progress. The key ratios provide a comprehensive picture of how the company develops in terms of economic status, efficiency and profitability. It is crucial that financial reporting should not become an end in itself, something we do only to satisfy the requirements of the accounting. Rightly utilized, the financial reporting is one of the main bases for the decision on pricing, marketing, investment and other measures to deal with in company that does not feel good.
We divide key ratios in five different groups. There is growth, working capital, financial balance, labor and capital efficiency and profitability.