Profitability and employment ratios give you targeted details about the success of your business. In short, they tell you how awesome your business is. This Slideshare will help you understand the types of profitability ratios and learn how you can use them to propel your business forward.

1. How Awesome is
Your Business?
HONCHO Business Intelligence

2. Knowledge is Awesome.
 Profitability ratios are
the key to running
an awesome business.
 They are knowledge
powerhouses full of important
business insight.

3. Find Your
Level of Awesome.
 Profitability ratios show you
where your business excels.
 Profitability ratios red flag where
your business is less than
awesome.

4. Click through to learn about
the types of profitability ratios
Once you identify
your level of
awesome, you can
create targeted
strategies to
become even more
profitable.

5. Are Your Sales
Awesome?
Return on Sales
Net Profit ÷ Sales
 This ratio shows you the percentage
profit earned on sales by your firm.
 This ratio should increase with your
volume of sales.

6. Are Your Assets
Awesome?
Return on Assets
Net Profit ÷ Total Assets
 This ratio gives you a measure of the
return on your total investment in
assets.

7. Is Your Business
Awesomely Attractive?
Return on Net Worth
Net Profit ÷ Net Worth (or Equity)
 The return must be high enough to
offset the investment risk or it will
be difficult to attract future
investment capital.

8. Click through to learn about
the types of employment ratios
Financial ratios
also measure
employee
performance.

9. Is Your Employee
Productivity Awesome?
Sales Per Employee
Sales ÷ # of Employees
 Determine the productivity of employees.
 A low measure may indicate that your firm
is over staffed. A high measure may
indicate that your firm is under staffed.

10. Are Your Employees
Awesome?
Profit Per Employee
Net Profit ÷ # of Employees
 Examine the profits generated by each of
your employees.

11. Visit honchohub.com
to find out how awesome you
are & get instant access
to your profitability &
employment ratios.
Start building
more profitable strategies
today.
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