The comparative report and ratios
Variance analysis, vertical analysis, 18 financial ratios, red flags, break-even point and multi-year trends.
The Comparative report turns two fiscal years into analysis: dollar and percentage variances, vertical analysis (each line as a % of sales or assets), 18 commented financial ratios, red-flag indicators and the break-even point.
- 1Open Comparative report for a client with at least two years.
- 2Walk through the sections: variances, ratios (liquidity, leverage, profitability, efficiency), red flags.
- 3Check the multi-year trends if the client has more than two years: the tool also projects the next year.
- 4Export everything to Excel or PDF for your files or for the client.
The red flags point at unusual items (declining margin, negative cash, ratios below usual thresholds): a good starting point for your questions to the client. Requires the Pro plan or higher.