Financial Statement Analysis: Accounting Ratios (Excel XLSX)

This is a fun tool for anyone that wants to have their own historical data of key financial performance indicators of publicly traded companies or wants to track their own businesses financial ratios over time and try to improve them. This tool is best suited for someone just out of college that wants to understand how the financial health of organizations are measured and compared. It could be a new Accountant hired into a small business as well.

Once you know what to look for, you can start figuring out how to optimize certain things that matter.

You will quickly see why cash flow is so important as well as metrics that lead to better cash flow.

Analyzing financial statements can seem daunting if you never tried to do it, but one great way to get started is with Accounting ratios.

These are ratios / calculations that can be derived from the financial statements of companies. They give greater insight into various financial health metrics of a company and since they are based on standardized data (Balance Sheet, Income Statement, Cash Flow Statement) the ratios are an apples to apples comparison between different companies.

Often, this kind of analysis is done to compare companies within the same industry or multiple periods for the same company. This template has 17 financial health ratios and is built in a way to teach and track for actual use.

There is a separate tab for each ratio and on that tab is the explanation of the ratio, the financial statements that contain the data needed to make the ratio, and the actual formula for the calculation.

The user only has to input the raw data and the ratio auto-calculates. This template has a roll-up summary of the result of each tab and a periodic tracker that is also linked to this. On each tab, there is also a pointer as to what financial statements you can find the required data that is input so that the ratio can be calculated.