Explained for business owners
Financial ratios and the figures on a company page, explained in plain language. For each concept you find the formula, a worked example and the items in Belgian annual accounts, which follow the European Accounting Directive.
Explained
Financial ratios and key figures
- Solvency ratioWhat share of a company is funded with its own money, and when that is enough.
- LiquidityCan a company pay its bills for the coming year? The current ratio and the quick ratio.
- Working capitalHow many euros of buffer a company has to pay the bills of the coming year.
- Debt-to-equity ratioHow many euros of debt there are for every euro of equity.
- Return on equityHow much profit a company makes on its owners' money (ROE).
- Return on assetsHow much a company earns from its normal business on everything it owns (ROA).
- Gross marginWhat remains of revenue after purchases and services, and why small companies show this figure instead of their revenue.
- EBITDAWhat the normal business earns before depreciation, interest and taxes.
- Cash flowProfit plus depreciation: roughly the cash the business generates.
- Altman Z-scoreHow the Z''-score is calculated, where to find the figures in Belgian annual accounts and how to read the result. With charts and a calculator.
- Piotroski scoreHow well is a company performing? Nine yes/no rules on the annual accounts, each compared with last year.
Explained
Annual accounts
Explained
Identification and e-invoicing
- Enterprise numberEnterprise number, VAT number and establishment unit number: the difference, the structure and the modulo 97 check.
- NACE codesThe code that says what a company does: structure, the 2008 and 2025 versions, and where to find it.
- E-invoicing via PeppolThe Belgian B2B e-invoicing obligation since 2026, what an e-invoice is and how the Peppol network works.
- 30bis withholding obligationWhen you must withhold part of an invoice when paying a contractor in Belgium, and how much.