Financial ratios for small business are important numbers that give a snapshot of how well your business is doing financially. They measure and evaluate the performance of your business against industry norms, helping you to identify areas of strength and weakness and assess your financial situation. Key ratios include profitability ratios such as return on assets, liquidity ratios such as current ratio, leverage ratios such as debt-to-equity, efficiency ratios such as inventory turnover, and other financial indicators such as operating cash flow. By understanding financial ratios, you can make more informed decisions about your business operations, stay competitive within your industry, and make strategic investments in the future.