Hidden messages in your financial statements – Ratio analysis and industry benchmarking provide added insight

Description

Abstract: By themselves, financial statements provide limited insight into a manufacturer’s performance. To get a clearer picture of what’s really happening requires a relevant basis of comparison. Financial ratios and industry benchmarks provide management with the tools to identify strengths and weaknesses. This article looks at a number of specific ratios that can serve manufacturers and notes several sources of benchmarking tools.