Tag: financial ratios

Financial Analysis

DuPont Analysis Explained: Breaking Down Return on Equity into Profitability, Efficiency, and Leverage

A rising ROE can mean genuine operational improvement or simply more borrowing. DuPont analysis splits return on equity into profitability, efficiency, and leverage so SME owners can tell which force is really driving the number before a lender or buyer asks.

Sep 17, 2026 6 min read

Accounting Fundations

Gross, Operating, and Net Profit Margin: What They Mean and Why They Matter

Two businesses each report £500,000 in annual revenue. One is thriving; the other is quietly struggling. The difference doesn’t show up in…

Aug 21, 2026 7 min read

Financial Reporting

Financial Ratios Explained: How to Use Liquidity, Profitability, and Efficiency Ratios to Understand Your Business

Your profit and loss account tells you whether you made money. Your balance sheet tells you what you own and what you…

Jul 17, 2026 9 min read

Management Reporting

Key Financial Ratios Explained: A Complete Guide to Liquidity, Profitability and Efficiency

Every business produces financial statements, but the numbers alone rarely tell the full story. A company with £500,000 in revenue might be…

Jun 5, 2026 8 min read