Family business transition planning is frequently predicated on the assumption that someday the parents will be passing on the baton to one (or several) of their own children. But that may not be the reality.

Financial ratios can be helpful tools in understanding a company’s financial health. They are a benchmark by which you can compare your business to industry standards and analyze changes over time.

By using financial ratios you can determine just where you stand in relation to liquidity, debt levels and profitability.