How to Measure Your Company's Overall Financial Health (Infographic) A new study also found that female- and minority-owned ventures are far less likely to be in good financial health than their male-owned, non-minority counterparts.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

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)

Related: Determining When You Should Hire a Full-Time Accountant

Wavy Line
Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Business News

The Virgin Islands Want to Serve Elon Musk a Subpoena, But They Can't Find Him

Government officials would like to talk to Tesla's owner as part of an investigation into the Jeffrey Epstein case.

Growing a Business

My Startup Scored a Multimillion-Dollar Contract With a Fortune 100 Client in Just 3 Years. Here's What We Learned.

There's no perfect litmus test to gauge if you're ready to go after big business or not — but if you don't take the risk, you'll never realize the reward.

Marketing

5 Questions to Ask a PR Pro Before Hiring Them

You probably haven't considered asking these questions, but they're a great way to find the right PR firm for your business.

Growing a Business

The Inevitable Challenges You'll Face as Your Business Grows — and How to Handle Them

There's going to be some discomfort as your business expands, but it doesn't have to stop you from achieving massive success.

Marketing

This Location-Based Marketing Technique Is the Key to Boosting Retail Sales

Let's take an in-depth look at geofencing marketing and how it's helping retail locations drive foot traffic and boost sales.