As a small business owner, it is essential to understand your key management ratios in order to make the right decision at the right time. These five key management ratios will help you assess how business is running and allow you to manage your business effectively.

Key financial ratios are one of the most important metrics for analyzing a company's health. Comparing company performance to industry and sector benchmarks allows you to get a sense of whether a company is experiencing growth, profitability or distress.