They tell you important information such as • how your company has performed financially over time • whether you have a sufficient “cushion” against a business downturn • how you stack up financially against competitors in your industry • whether you have spent too much (or too little) on equipment • how you’re doing at collecting the money your customers owe you • whether you’ll be able to make payments on your outstanding loans • whether you can afford to pay yourself more than you have in the past
