Financial Ratio Analysis
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Financial Ratio Analysis

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Purpose

View general ledger ratios for a selected period.

Overview

Use Financial Ratio Analysis to display solvency and profitability ratios, which allow you to analyze your company’s debt paying ability, ability to meet currently maturing obligations, efficiency in collecting receivables, and profitability of assets.

Viewing General Ledger Ratios

To view general ledger ratios:

  1. If your company uses consolidation ledgers, verify the ledger ID for which you want to view general ledger ratios is entered in the Ledger ID field.

  2. Verify the correct period and year are displayed in the Period and Year fields. You can click the Lookup buttons to change the period and year.

  3. If you do not want to display ratios for all companies, clear the All Companies check box, and then enter a company in the Company field.

  4. Select the check boxes for ratios you want to display.

  5. Click the Show Ratios button in the ribbon. The ratios appear, and the Detail button is enabled for each displayed ratio.

  6. Click Detail for a ratio to view ratio details in the bottom of the window.

  7. Double-click an account category to view ratio details for the accounts in the category. You can then double-click an account to display Account Detail Inquiry, which allows you to view detailed account activity.

Ribbon Home Tab Buttons

Button

Description

Exit

Click this button to close the Financial Ratio Analysis window.

Show Ratios

Click this button to display the selected ratios. After you click this button, the Detail button is enabled for the ratios you selected.

Return

Click this button to display ratios after you display the accounts within a category. This button is only available after you double-click an account category in the Category Detail grid.

Lookup Tab Fields and Buttons

Field or Button

Description

Period

Click the Lookup button to select the period for which to display ratios.

Year

Click the Lookup button to select the year for which to display ratios.

Ledger ID

Enter a ledger ID for which to display ratios, or click the Lookup button to select a ledger ID.

Note This field is only available if at least one consolidation ledger is set up.

All Companies

Select this check box to display ratios for all companies. This check box is selected by default.

Company

Enter a company for which to display ratios, or click the Lookup button to select a company. This field is only available if you clear the All Companies check box. You can also click the List button to select multiple companies.

List

Click this button to display Company List, which allows you to select multiple companies. This button is only enabled if you clear the All Companies check box.

Current Ratio

Select this check box to display the current ratio, which indicates a company's ability to meet currently maturing obligations. For information on how this ratio is calculated, see Financial Ratios.

Detail

Click this button to display details for the selected ratio.

Debt to Equity Ratio

Select this check box to display the debt to equity ratio, which allows you to assess equity-holder risk. For information on how this ratio is calculated, see Financial Ratios.

Acid-Test Ratio

Select this check box to display the acid-test ratio, which indicates a company's instant obligation-paying ability. For information on how this ratio is calculated, see Financial Ratios.

Times Interest Earned

Select this check box to display the times interest ratio, which allows you to assess the risk to debt-holders in terms of number of times interest charges were earned. For information on how this ratio is calculated, see Financial Ratios.

Inventory Turnover

Select this check box to display the inventory turnover ratio, which is a metric used to assess inventory velocity. For information on how this ratio is calculated, see Financial Ratios.

Debt Ratio

Select this check box to display the debt ratio, which is a financial metric of financial stability. For information on how this ratio is calculated, see Financial Ratios.

Avg. Days to Turnover

Select this check box to display the average days to turnover ratio, which is a metric used to assess inventory velocity. For information on how this ratio is calculated, see Financial Ratios.

Equity Ratio

Select this check box to display the equity ratio, which is a financial metric of financial stability. For information on how this ratio is calculated, see Financial Ratios.

Days Sales in Inventory

Select this check box to display the days sales in inventory ratio, which is a metric used to assess inventory velocity. For information on how this ratio is calculated, see Financial Ratios.

Return on Total Assets

Select this check box to display the return on total assets ratio, which allows you to assess the profitability of a company's assets. For information on how this ratio is calculated, see Financial Ratios.

A/R Turnover

Select this check box to display the accounts receivable turnover ratio, which is a metric used to assess accounts receivable velocity. For information on how this ratio is calculated, see Financial Ratios.

Gross Profit Ratio

Select this check box to display the gross profit ratio, which is a financial metric. For information on how this ratio is calculated, see Financial Ratios.

Avg. Age A/R

Select this check box to display the average age accounts receivable ratio, which is a metric used to assess accounts receivable velocity. For information on how this ratio is calculated, see Financial Ratios.

Earnings to Sales Ratio

Select this check box to display the earnings to sales ratio, which is a financial metric. For information on how this ratio is calculated, see Financial Ratios.

Days of Sales in A/R

Select this check box to display the days of sales in accounts receivable ratio, which is a metric used to assess accounts receivable velocity.  For information on how this ratio is calculated, see Financial Ratios.

Asset Turnover Ratio

Select this check box to display the asset turnover ratio, which allows you to assess a company's effectiveness in the use of assets. For information on how this ratio is calculated, see Financial Ratios.

Avg. Operating Cycle

Select this check box to display the average operating cycle ratio, which is a financial metric. For information on how this ratio is calculated, see Financial Ratios.

Return on Owners Equity

Select this check box to display the return on owner's equity ratio, which allows you to assess the profitability of the investment by stockholders. For information on how this ratio is calculated, see Financial Ratios.

Year Operating Cycle

Select this check box to display the year operating cycle ratio, which is a financial metric. For information on how this ratio is calculated, see Financial Ratios.

Return on Long Term Capital

Select this check box to display the return on long term capital ratio, which is a financial metric. For information on how this ratio is calculated, see Financial Ratios.

Account Detail

This grid displays ratio details for all the accounts in the selected general ledger category. This grid only appears after you double-click a general ledger category in the Category Detail grid. Double-click an account to display Account Detail Inquiry, which allows you to view detailed account activity.

Category Detail

This grid displays ratio details for general ledger categories after you click Detail for a ratio.