Tracking a utility’s financial ratios is a very useful management and decision-making tool. Financial ratios help you measure your utility’s financial strength, stability, credit worthiness, and growth capabilities. Monitoring how key financial ratios track over time, or how they compare to other utilities, allows you to assess current financial performance, determining if you need to change rates or financial policies, and helps you plan for future growth and development of the enterprise. This video reviews common metrics used to indicate financial performance and describes what they mean.
