SMALL BUSINESS
                                                                                                                                                                                          Ratio analysis template
                                                                                                                                                                                          Use this calculator to quickly work out the ratios in your business. Complete the following each month to keep on top of your current financial situation.  
                                                                                                                                                                                                                                                                    January February             March          April          May           June           July        August September October NovemberDecember
                                                                                                                                                                                          Sales                                                                    $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Annual invoiced sales                                                    $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Net profit                                                               $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Opening stock                                                            $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Closing stock                                                            $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Purchases                                                                $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Expenses                                                                 $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Current assets                                                           $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Current liabilities                                                      $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Debtors                                                                  $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Owner's equity                                                           $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                -   $                - 
                                                                                                                                                                                          Results
                                                                                                                                                                                          Net profit ratio                                                               -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                          This ratio shows whether the business operates at a           1200.0%
                                                                                                                                                                                          sufficient level to cover all expenses and show a profit. 
                                                                                                                                                                                          You should look at your ratios at least yearly,               1000.0%
                                                                                                                                                                                          preferably monthly, some businesses do it weekly -             800.0%
                                                                                                                                                                                          and daily is probably a bit much.
                                                                                                                                                                                                                                                         600.0%
                                                                                                                                                                                                                                                         400.0%
                                                                                                                                                                                                                                                         200.0%
                                                                                                                                                                                                                                                            0.0%
                                                                                                                                                                                          Return on owners equity                                                        -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                          This ratio indicates whether you are receiving a              1200.0%
                                                                                                                                                                                          satisfactory return from your investment in your 
                                                                                                                                                                                          business. Owner’s Equity represents how much money  1000.0%
                                                                                                                                                                                          you’ve invested to start or buy a business, plus any            800.0%
                                                                                                                                                                                          profit left in over the years. It should be at least greater 
                                                                                                                                                                                          than the interest you could otherwise earn on your              600.0%
                                                                                                                                                                                          money at the bank.
                                                                                                                                                                                                                                                          400.0%
                                                                                                                                                                                                                                                          200.0%
                                                                                                                                                                                                                                                            0.0%
                                                                                                                                                                                          Rate of stock turn (times per year)                                            -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                          The idea here is to turn your stock around as fast as               12
                                                                                                                                                                                          possible while still maintaining adequate levels. A 
                                                                                                                                                                                          slow stock turn could mean overstocking or that you                 10
                                                                                                                                                                                          hold high levels of out-of-date or un-saleable items.                8
                                                                                                                                                                                          Compare your stock turn rate to similar businesses in 
                                                                                                                                                                                          the industry.                                                        6         -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                                                                                               4
                                                                                                                                                                                                                                                               2
                                                                                                                                                                                                                                                               0
                                                                                                                                                                                          Working capital ratio                                                          -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                          A ratio of 2 to 1 should be aimed for, ($2 in assets for         12.00
                                                                                                                                                                                          every $1 of liabilities), but this will depend on the cash 
                                                                                                                                                                                          cycle of the business, i.e., stock turn, debtor collection       10.00
                                                                                                                                                                                          times, etc.                                                       8.00
                                                                                                                                                                                                                                                            6.00         -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                                                                                            4.00
                                                                                                                                                                                                                                                            2.00
                                                                                                                                                                                                                                                            0.00
                                                                                                                                                                                          Debtor to sales ratio (weeks)                                                  -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                          On normal credit terms, debtors should be collected 
                                                                                                                                                                                          within 40 days. The more efficiently you collect debt,            12.0
                                                                                                                                                                                          the better your cash flow situation is likely to be. If this      10.0
                                                                                                                                                                                          ratio is deteriorating it shows you are not managing 
                                                                                                                                                                                          your debtors efficiently and people loaning money to                8.0
                                                                                                                                                                                          you will take note. Remember you are in business to 
                                                                                                                                                                                          make a profit, not to finance other businesses with                 6.0
                                                                                                                                                                                          "cheap" money by letting them get away with not 
                                                                                                                                                                                          paying you.                                                         4.0
                                                                                                                                                                                                                                                              2.0
                                                                                                                                                                                                                                                              0.0
                                                                                                                                                                                          Expenses ratio                                                                 -             -             -             -              -             -             -             -             -              -             -             -
                                                                                                                                                                                          Expenses should always be kept as low as possible and  1200.0%
                                                                                                                                                                                          under control in relation to previous years. You should 
                                                                                                                                                                                          look at the expense ratio particularly if the net profit       1000.0%
                                                                                                                                                                                          ratio shows a downward trend. Different items of 
                                                                                                                                                                                          expenditure can also be calculated on this basis.               800.0%
                                                                                                                                                                                                                                                          600.0%
                                                                                                                                                                                                                                                          400.0%
                                                                                                                                                                                                                                                          200.0%
                                                                                                                                                                                                                                                            0.0%
                                                                                                                                                                                          Note. This is a guide only and should neither replace competent advice, nor be taken or relied upon as financial or professional advice. Seek professional advice before making any decision that could affect your business.