How to Measure Your Company's Overall Financial Health (Infographic)

Though it may seem as simple as a cursory glance at a bank statement, measuring the financial well-being of your company is actually far more complex.

And a new infographic compiled by the Federal Reserve, Pepperdine University and online lending company FundWell aims to shed light on what small businesses can do to optimize their financial health.

Whereas successful companies have “experience navigating the lending landscape, more available credit and frequently monitor their business cash flow,” according to the report, underperformers suffer from “less knowledge about financing products, lower personal credit scores, less access to financing and fewer formal financial management practices in place.”

Related: The One Thing Entrepreneurs Must Get in Order Before They Launch a Business

The study, based on 940 businesses nationwide, also concluded that female- and minority-owned ventures are far less likely to be in good financial health than their male-owned, non-minority counterparts. The lower scores were mostly related to the amount of unused available credit they had on credit cards, number of full-time staff employed and the success they had in securing bank loans and other financing, according to the report.

Check out more findings in the infographic below.

Click to Enlarge+
How to Measure Your Company's Overall Financial Health (Infographic)


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Edition: October 2016

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