Cash Flow Ratios Calculator

This cash ratios calculator uses operating cash flow instead of net income to calculate three financial ratios. Unlike net income, cash flow is an objective measure of performance which cannot be manipulated or distorted using accounting assumptions and opinions.

Cash Flow Ratios Calculator September 26th, 2017Team
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Cash Flow Ratio Analysis

Cash flow ratios can be calculated using cash flow from operating activities found in the cash flow statement of a business. Using cash flow avoids the use of net income which is a subjective measure traditionally used in the calculation of accounting ratios.

Cash Flow Ratio Analysis September 25th, 2017Team
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Vertical Analysis Calculator

A vertical analysis shows each line of financial statements as a percentage of a base line item so that comparisons can be made. This free Excel calculator produces a vertical analysis of an income statement in relation to total revenue, and of a balance sheet in relation to total assets.

Vertical Analysis Calculator November 6th, 2016Team
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Accounting Rate of Return

The accounting rate of return is can be abbreviated to ARR and is sometimes referred to as the average rate of return. The ratio measures the accounting profitability based on net income, and takes no account of the time value of money.

Accounting Rate of Return November 6th, 2016Team
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Days Sales Outstanding

The days sales outstanding shows the average number of days your customers are taking to pay you. It is calculated by dividing average accounts receivables by the daily credit sales.

Days Sales Outstanding November 6th, 2016Team
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Degree of Operating Leverage Calculator

The degree of operating leverage shows the effect on operating income of the cost structure of a business. The higher the fixed costs the higher the leverage and the more volatile and risky the operating income of a business is viewed.

The degree of operating leverage calculator allows for details relating to two businesses or accounting periods to be entered so that comparisons can be made.

Degree of Operating Leverage Calculator February 21st, 2017Team
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Operating Leverage

The operating leverage shows the level of fixed cost leverage within a business, and the degree of operating leverage shows the impact of the cost structure on the operating income of the business.

The operating income for a business with high leverage can change dramatically for a given change in the number of units sold, and its earnings are said to be more volatile and therefore more risky

Operating Leverage November 6th, 2016Team
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Cash Flow Statement Analysis

It is quite feasible for a business to show a healthy balance sheet and be profitable, but if it runs out of cash it will fail.

The balance sheet only shows the position at a particular point in time, and the income statement deals in profit not cash. The purpose of the business cash flow analysis is to correct this situation.

Cash Flow Statement Analysis July 20th, 2017Team
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Income Statement Analysis

Income statement analysis can be carried out using ratios based on information contained within the income statement. Understanding how to read a income statement and regular monitoring of the income statement ratios provides owners and management with a useful tool to help them manage their business more effectively.

By analyzing the income statement a business is able to see how it is performing relative to earlier accounting periods, and how its performance compares to other businesses in the industry.

Income Statement Analysis November 6th, 2016Team
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Balance Sheet Analysis

Balance sheet ratio analysis can be carried out using ratios based on information contained within the balance sheet. Knowing how to analyze a balance sheet gives the reader a better understanding of a business, allows changes over time to be monitored, and allows comparisons of different businesses to be made.

Balance Sheet Analysis November 6th, 2016Team
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Common Size Income Statement Calculator

The common size income statement shows each line of a standard income statement as a percentage of the total revenue (sales) of a business.

This free Excel calculator produces a common size income statement from standard information taken from the income statement of a business.

Common Size Income Statement Calculator November 6th, 2016Team
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Common Size Income Statement

A common size income statement is one that has an additional column showing each monetary amount as a percentage of the total revenue of the business. The common size income statement is not required by Accounting Standards, and is used more as a management tool rather than a formal reporting document.

Common Size Income Statement November 6th, 2016Team
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