| | Examples of Ratio Analysis |
| | Company Name: |
| | COMPARITIVE BALANCE SHEET |
| | Year Ending 'as follows' | | | | | Trend Analysis for Year's ended |
| | | | | | | Latest | Latest | Latest |
| Assets | Latest Year | | Latest less 1Year | | Latest less 2 Years | yr 3 v yr2 | Yr3 v Yr 1 | Yr 2 v yr 1 |
| Cash | 1,000,000 | | 800,000 | | 900,000 | 25% | 11% | -11% |
| Accounts Receivable (less allowance) | 200,000 | | 240,000 | | 180,000 | -17% | 11% | 33% |
| Merchandise Inventory | 450,000 | | 400,000 | | 360,000 | 13% | 25% | 11% |
| Prepaid Expenses | 150,000 | | 125,000 | | 100,000 | 20% | 50% | 25% |
| Total Current Assets | $ 1,800,000 | | $ 1,565,000 | | $ 1,540,000 | 15% | 17% | 2% |
| Furniture and Equipment (less depreciation) | 2,200,000 | | 2,400,000 | | 2,000,000 | -8% | 10% | 20% |
| Total Assets | $ 4,000,000 | | $ 3,965,000 | | $ 3,540,000 | 1% | 13% | 12% |
| Liabilities and Capital | Latest Year | | Latest less 1Year | | Latest less 2 Years |
| Accounts payable | $ 150,000 | | $ 175,000 | | $ 120,000 | -14% | 25% | 46% |
| Notes payable | 250,000 | | 250,000 | | 250,000 | 0% | 0% | 0% |
| Accrued Expenses | 100,000 | | 120,000 | | 80,000 | -17% | 25% | 50% |
| Total Current Liability | $ 500,000 | | $ 545,000 | | $ 450,000 | -8% | 11% | 21% |
| Long-term liabilities | $ - 0 | | $ - 0 | | $ - 0 |
| Total Liabilities | $ 500,000 | | $ 545,000 | | $ 450,000 | -8% | 11% | 21% |
| Capital / Owner's Equity | 3,500,000 | | 3,420,000 | | 3,090,000 | 2% | 13% | 11% |
| Total Liabilities and Capital/Owner's Equity | $ 4,000,000 | | $ 3,965,000 | | $ 3,540,000 | 1% | 13% | 12% |
| Please Note: The above Balance Sheet Analysis is designed for 3 year comparitive statements. Please read instructions at the bottom. |
| | COMPARATIVE INCOME STATEMENT | | | | | Trend Analysis for Year's ended |
| | For Year's ended December 31 | | | | | Latest | Latest | Latest |
| | Latest Year | | Latest less 1Year | | Latest less 2 Years | yr 3 v yr2 | Yr3 v Yr 1 | Yr 2 v yr 1 |
| Sales (Net) | $ 4,000,000 | | $ 3,000,000 | | $ 2,400,000 | 33% | 67% | 25% |
| Cost of Goods Sold | 2,400,000 | | 1,800,000 | | 1,440,000 | 33% | 67% | 25% |
| Gross Margin | $ 1,600,000 | | $ 1,200,000 | | $ 960,000 | 33% | 67% | 25% |
| Expenses (less other income) | 1,300,000 | | 800,000 | | 700,000 | 63% | 86% | 14% |
| Net Income for the year | $ 300,000 | | $ 400,000 | | $ 260,000 | -25% | 15% | 54% |
| | COMPARATIVE COMMON SIZE INCOME STATEMENT |
| Sales (Net) | 100% | | 100% | | 100% |
| Cost of Goods Sold | 60.0% | | 60.0% | | 60.0% |
| Gross Margin | 40.0% | | 40.0% | | 40.0% |
| Expenses (less other income) | 32.5% | | 26.7% | | 29.2% |
| Net Income for the year | 7.5% | | 13.3% | | 10.8% |
| Ratios | Current | | 1 yr prior | | 2 yrs prior |
| Liquidity/Solvency |
| Current Ratio | 3.60 | | 2.87 | | 3.42 |
| Quick Ratio (Acid Test) | 2.40 | | 1.91 | | 2.40 |
| Debt ratio | 0.13 | | 0.14 | | 0.13 |
| Debt/liabilities to Equity/Capital | 0.14 | | 0.16 | | 0.15 |
| Efficiency |
| D.S.O -Days Sales Outstanding | 18 | | 29 | | 27 |
| Inventory Turnover | 5.3 | | 4.5 | | 4.0 |
| Accounts Payable to Sales | 4% | | 6% | | 5% |
| Profitability |
| Return on Sales | 7.5% | | 13.3% | | 10.8% |
| Return on Capital/Equity | 9% | | 12% | | 8% |
| Return on Assets | 8% | | 10% | | 7% |