Ratio Analysis

[eko]

@Tut

More flexibility and intuitiveness for custom report building is by far a better solution for more users than built-in reports with predetermined formats or options.

I do not think it is an either - nor. The core statements such as P&L, Balance Sheet, etc and also GL are fine as they are. It becomes unsatisfactory for more details about Purchases, Sales, Customers, Suppliers, additional calculations and indices are concerned, but often this is also related to limitations in data capturing itself. Both standard and custom reports are needed.

[ragas]

Hi, Is there any plan to bring the financial ratios as part of the Manager Reports. ?
Mainly

1. Liquidity Ratios

2.  Solvency Ratios
   

3. Profitability Ratios
4. Efficiency Ratios
5. Coverage Ratios
   6 Market Prospect Ratios

I don’t know too much about this however some of our clients ask these ratios and I had to get help from a financial person to manually calculate this. If this is readily available as part of the report section it would be nice especially Manager is a simple and user friendly software.

[Tut]

There is no end to calculations different people want in support of financial and management analysis and decision-making. Worse, the same terminology means different things to different people, depending on organizational structure and business niche. Those differences can also depend upon the design of the chart of accounts.

I suspect that if you polled your clients, you would not achieve consensus on how they believe the ratios mentioned should be computed. So your suggestion seems impractical.

[shahabb]

A topic related to this is already in ideas.

Ratio Analysis

Dear @lubos, I have done some research in the forum for past request and I have seen that there had been request to implent the possibility to calculate ratios from data inside Manager. Do you think there is room to implement them?

[Tut]

@ragas, I have moved your post and all responses to it to the existing topic in the ideas category that @shahabb was kind enough to dig out. As you will see by reading the earlier posts in the topic, there is no agreement on what might be included.

If you search more diligently, I am quite sure you will find other related threads dating back years. The question is always where to stop once you begin responding to requests by various users.

[Ealfardan]

I think it’s a good call to place this in ideas @Tut.

This is also a good piece of advice:

@Tut

The question is always where to stop once you begin responding to requests by various users.

Especially since there’s no agreement on the most basic of all financial ratios.

Take days in receivables for example, there are at least a few competing definitions each with its pros and cons. This gets even more complicated with more advanced ratios.

I can see the challenge this idea, but it’s still a good idea.

[Tut]

@Ealfardan

I think it’s a good call to place this in ideas @Tut.

I can’t take credit (or blame) for that. @lubos moved this to the ideas category two and a half years ago. He was an active participant in the original discussion, but did not really take a position.