Isn't it time you measured the performance of your business? The Ratio Report is the financial tool to allow you to do this. If you want to apply for a loan the lender will want to look at this report to assess the financial strength of the business and your ability to service the loan in good and tough times.
Your ratios tend to report on past performances however can be used to provide lead indications of potential problem areas. Ratio analysis is primarily used to compare a business’s financial figures over a period of time — a method sometimes called trend analysis. Through trend analysis, you can identify trends and adjust your business practices accordingly. You can also see how your ratios stack up against other businesses.
If you are making a comparative analysis of a business’s financial statements over a certain period of time, make an appropriate allowance for any changes in accounting policies that occurred during the same time span. The Phoenix Farm Business Management Suite utilises Common Mapping Codes (CMC) as the basis for the production of the Ratio Report. These reports have a common format so that they can be compared with the same report from other Phoenix users. (An asset to anyone involved in benchmarking groups or consultation services.) The CMC provides a means of standardising certain reports without compromising the individual users ability to configure Phoenix to his/her own individual requirements.
- Operating Profit to Total Assets
- Business Return to Net worth
- Loan Interest to Net Income
- Times Interest Earned
- Debt to Operating Profit
- Debt to Total Asset
- Debt to Net worth
- Current Assets to Current Liabilities
- Cash to Current Liabilities
- Working Capital
- Working Capital to Total Assets
- Net worth Percentage
- Return on Assets *
- Turnover Ratio *
- Gross Margin Ratio *
- Overhead Ratio *
- Finance Ratio *
- Interest Coverage Ratio *
- Fixed Charge Coverage Ratio *
(* indicates that the ratio is only available with Phoenix Financial Pro)