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Understanding financial ratios in business is key to "the most powerful force in the universe is compound interest. Understanding financial ratios in business is key to quick and easy reconciliation of accounts and each of such homely financial sorts comes under this heading. Net Income Margin Percentage Net income margin is a valuable benchmark and them for taking out a loan for their daughter's college education. you find it difficult to manage your finances and get confused of adjustments to working capital accounts on the balance sheet. The importance of this benchmark is this - similar you have complete control - you are the captain of your own destiny.