Key Financial Ratios
The Key Financial Ratios report is a useful tool that can help you evaluate the performance and prospects of your company.
A Key Ratio is a figure representing a particular aspect of your company’s performance. Key Ratios are fully user-definable: you must create your own Key Ratios before you can produce the report. Examples might be sales for the current period or for a previous one, sales per sq. ft. for retail outlets, and the relation between salaries and debited time for consultants. The Key Financial Ratios report is essentially a list of Key Ratios that you have defined yourself.
As well as creating your own Key Ratios to appear in the Key Financial Ratios report, you can also create several Key Ratio reports. This will allow you to create and produce several discrete reports that focus on different aspects of your business.
One particular Key Ratio is used in another report. The % Turnover option in the Profit & Loss report requires you to have defined a Key Ratio for ‘turnover’, named “TURNO”.
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