Financial ratios and measurements calculator
The world of financial ratios and measurements is very large and diverse. I do not know any specialist who could boast of exhaustive knowledge in this area. In this regard, this macro is to help those who are often involved into the process of calculation of financial coefficients. This model does not claim to cover all existing indicators, however it calculates more than 90 coefficients and measurements, which is more than enough for any serious financial analysis. Structurally, this model consists of two parts: a form for data input and a form of finished results. Both of these forms are modified according to the user’s needs, namely based on the type of analysis he or she is going to perform.
The user of this model can calculate the indicators of profitability (ROA, ROE, ROCE, profit margins etc.), business activity (turnover of different assets etc.), liquidity (current ratio, quick ratio, cash ratio, working capital etc.), financial leverage (debt to equity, debt to capital etc.), coverage, valuation, bankruptcy, as well as specific indicators calculated in the departments of marketing, logistics, accounting, production Department, engineering Department, etc. The peculiarity of this model is that it has a macro that allows the analyst to choose a set of required indicators for the calculation, and save time on entering the initial data.
Sources of methodology:
- Bragg, Steven M. Business ratios and formulas : a comprehensive guide / Steven M. Bragg. – 2002;
- Thomas R. Robinson. International financial statement analysis / (CFA Institute investment series). – 2008;
- Timothy R. Mayes. Financial Analysis with Microsoft Excel. Sixth Edition.
Vadim Sobkin (www.economist-mate.com)