Express Financial Position Assessment
Enter your annual figures to score the ratios that matter most.
Results
Gross profit margin
Gross profit as a percentage of revenue. Shows how much each sale leaves after covering the cost of sales. Norms vary significantly by industry. —
— Net profit margin
Net profit as a percentage of revenue — how many tetri of profit remain from every lari of sales. —
— Current ratio
Current assets / current liabilities. Shows whether the company is able to meet its short-term obligations. —
— Quick ratio
(Current assets − inventories) / current liabilities. The same, but excluding inventories, because they cannot always be sold quickly. —
— Debt-to-equity ratio
Total liabilities / equity. Shows the extent to which the business is financed with borrowed funds. —
— Interest coverage ratio
Operating profit / interest expense. How many times profit covers loan interest — one of the key indicators for banks. —
— Return on assets (ROA)
Net profit / total assets. How efficiently the company uses its assets to generate profit. —
—Benchmarks are general and vary by industry.
Glossary of terms
- Sales revenue
- Income received during the year from the sale of goods or services (excluding VAT).
- Gross profit
- Revenue minus the cost of goods sold.
- Operating profit (EBIT)
- Profit after all operating expenses, before interest and profit tax.
- Net profit
- The bottom-line profit after all expenses, interest and taxes.
- Interest expense
- Interest paid on loans during the year.
- Current assets
- Cash and assets that will be converted into cash within one year — accounts receivable, inventories, cash.
- Inventories
- Goods for resale, raw materials and finished products held in stock.
- Current liabilities
- Obligations payable within one year — amounts owed to suppliers, short-term loans, taxes.
- Total assets
- The sum of all the company's assets per the balance sheet.
- Total liabilities
- The sum of all liabilities — short-term and long-term.
- Equity
- Total assets minus total liabilities — the owners' stake in the company.
- Gross profit margin
- Gross profit as a percentage of revenue. Shows how much each sale leaves after covering the cost of sales. Norms vary significantly by industry.
- Net profit margin
- Net profit as a percentage of revenue — how many tetri of profit remain from every lari of sales.
- Current ratio
- Current assets / current liabilities. Shows whether the company is able to meet its short-term obligations.
- Quick ratio
- (Current assets − inventories) / current liabilities. The same, but excluding inventories, because they cannot always be sold quickly.
- Debt-to-equity ratio
- Total liabilities / equity. Shows the extent to which the business is financed with borrowed funds.
- Interest coverage ratio
- Operating profit / interest expense. How many times profit covers loan interest — one of the key indicators for banks.
- Return on assets (ROA)
- Net profit / total assets. How efficiently the company uses its assets to generate profit.
Results are indicative and do not constitute financial advice.