Comments on: Financial Ratios You Need to Know When Buying a Business http://www.millionaireacts.com/1934/financial-ratios-you-need-to-know-when-buying-a-business.html Escape the Rat Race and Join My Journey to Financial Freedom Wed, 08 Feb 2012 15:12:46 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Darvin @ Recycling Christmas Card http://www.millionaireacts.com/1934/financial-ratios-you-need-to-know-when-buying-a-business.html#comment-7021 Darvin @ Recycling Christmas Card Sat, 21 Nov 2009 05:30:51 +0000 http://www.millionaireacts.com/?p=1934#comment-7021 This is a pretty good list of ratios, but there are still two things you have to remember when using rations: 1) Yes, numbers don't lie, but people do, and the accounting rules still leave some room for manipulation. Financials should not be taken at face value either. As you say. due diligence is still a must! 2) You need to understand what the ratios mean/indicate! This is a pretty good list of ratios, but there are still two things you have to remember when using rations:

1) Yes, numbers don’t lie, but people do, and the accounting rules still leave some room for manipulation. Financials should not be taken at face value either. As you say. due diligence is still a must!

2) You need to understand what the ratios mean/indicate!

]]> By: Tyrone http://www.millionaireacts.com/1934/financial-ratios-you-need-to-know-when-buying-a-business.html#comment-6780 Tyrone Sun, 15 Nov 2009 02:35:25 +0000 http://www.millionaireacts.com/?p=1934#comment-6780 Yeah, I agree with you Sire. However, if the business is small, it's easy to spot the fraud. Careful and thorough due diligence is the key. Yeah, I agree with you Sire. However, if the business is small, it’s easy to spot the fraud. Careful and thorough due diligence is the key.

]]> By: Credit Card Chaser http://www.millionaireacts.com/1934/financial-ratios-you-need-to-know-when-buying-a-business.html#comment-6760 Credit Card Chaser Sat, 14 Nov 2009 17:34:41 +0000 http://www.millionaireacts.com/?p=1934#comment-6760 Also the Receivable Turnover ratio which is annual credit sales / accounts receivables. Also the Receivable Turnover ratio which is annual credit sales / accounts receivables.

]]> By: Sire http://www.millionaireacts.com/1934/financial-ratios-you-need-to-know-when-buying-a-business.html#comment-6755 Sire Sat, 14 Nov 2009 14:15:55 +0000 http://www.millionaireacts.com/?p=1934#comment-6755 While it's good to know all this, one must keep in mind that figures can be doctored, and sometimes what is presented to you is not exactly the truth. While it’s good to know all this, one must keep in mind that figures can be doctored, and sometimes what is presented to you is not exactly the truth.

]]> By: Extreme John http://www.millionaireacts.com/1934/financial-ratios-you-need-to-know-when-buying-a-business.html#comment-6754 Extreme John Sat, 14 Nov 2009 14:01:28 +0000 http://www.millionaireacts.com/?p=1934#comment-6754 I am currently working on selling a business this is nice to see what the buyer is looking for. I am currently working on selling a business this is nice to see what the buyer is looking for.

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