Here are some simple business ratios that are worth conducting on your business (with suggestions for acceptable values in brackets):

• Return on capital employed = profit before tax/capital employed (>15 per cent)
• Current ratio = current assets/current liabilities (>1)
• Interest cover = profit before interest/interest (>2)
• Stock turnover = turnover/stock (>12)
• Salary ratios = pharmacist wages/turnover (<8 per cent) = non-pharmacist wages/turnover (<6 per cent)

References and further reading

Hill N. Think and Grow Rich. San Diego: Aventine Press; 2004
Lundin SC et al. FISH! London: Hodder Paperbacks; 2002
Evans P, Wurster TS. Blown to Bits. Boston: Harvard Business School Press; 1999
Blanchard K. One Minute Manager. New York: Harper; 2011
Johnson S. Who Moved My Cheese? London: Vermillion; 1999
Covey SR. The 7 Habits of Highly Effective People. London: Simon & Schuster Ltd; 2004
Porter M. Competitive Strategy. London: Free Press; 2004
Kim WC, Mauborgne R. Blue Ocean Strategy. Boston: Harvard Business School Press; 2005

The next step is to put these ideas into action. Finish by recording your learning outcomes.