The 10 Financial Ratios Every Founder Should Actually Track
It All Begins Here
Your financials already have the answers—you just need to know what to measure based on your goal.
When I go for a run, I care about speed. When I’m hiking, I care about elevation gain and pace, making sure I don’t go TOO fast.
Same activity—different metrics. Your business works the same way.
Most founders look at their financials the same way every month:
Did I make money?
Did I lose money?
That’s not enough. If you’re trying to diagnose a problem you need to slice the data in a different way. Because what you track should depend on what you’re trying to improve.
If your goal is:
Growing revenue → you should be tracking growth rate ((Current revenue - prior revenue)/prior revenue) x 100)
Improving margins → you need to track gross profit margin
Increasing profitability → you should be watching operating and net margins
Your financials already contain this data but without the right calculations, it’s just noise. I recently listen to a podcast with Alex Hormozi and he mentioned how without the right data attribution your numbers can’t work for you. That’s what really got me thinking about how valuable it is to be able to connect the dots with your data to tell the story of your financial results.
This guide breaks down the 10 most important financial ratios and shows you:
What each ratio measures
How to calculate it
When it actually matters for your business
So you can stop guessing—and start tracking what actually drives results.