Financial Reporting

Financial Ratio Analysis Template

Calculate and analyze key financial ratios. Track profitability, liquidity, solvency, and efficiency ratios period-over-period.

How to use this template

1

Calculate profitability ratios

Compute gross profit margin, operating margin, net profit margin, return on assets (ROA), and return on equity (ROE). Compare to industry benchmarks.

2

Calculate liquidity ratios

Calculate current ratio, quick ratio, working capital, and cash ratio. Assess ability to meet short-term obligations.

3

Calculate solvency ratios

Compute debt-to-equity, debt-to-assets, interest coverage, and debt service coverage ratios. Assess financial leverage and default risk.

4

Calculate efficiency ratios

Compute asset turnover, inventory turnover, receivables turnover, payables period, and cash conversion cycle.

5

Analyze trends and variances

Compare ratios to prior periods, industry benchmarks, and competitors. Identify improving or deteriorating trends and investigate causes.

Why use this template

  • Provides quantitative view of financial health and operating efficiency
  • Enables comparison to industry benchmarks and competitors
  • Identifies trends that may indicate emerging problems
  • Supports debt covenant compliance and credit discussions

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