What are Financial Ratios?
It is a means to gain insights regarding the company’s financial position and performance.
For the purpose of the feasibility study, we are going to compute ratios under the following categories:
- Liquidity Ratios
- Efficiency Ratios
- Solvency Ratios
- Profitability Ratios
How to compute for Financial Ratios?
To compute the financial ratios all you need to do is to divide one account to another. The only thing that usually complicates things is to identify which account should be divided into which.
To make it even more simple, we made an Excel template listing all the commonly used ratios for feasibility studies.
Excel Template
If the web template is not working. Please try the following:
- Refresh the page.
- Use PC or tablet.
- Make sure that you are NOT using Incognito Mode or Safari Browser.
- If the above steps don’t work, you may download the file Financial Ratios for Feasibility Study.xlsx
How to use the Feasib Accountant's Financial Ratio template?
All you need do is type or copy and paste your data into our Excel template.
Here are some quick instructions:
- Input your data on the gray-shaded cells. It will turn white once data has been encoded.
- To compute Averages, use either of these formulas:
=AVERAGE(Beginning Balance, Ending Balance)
=AVERAGE(Previous Year Amount, Current Year Amount) - You may IGNORE items that are not needed in your feasibility study.
You may watch our YouTube video on how to use the template.
Available in English and Tagalog-English(Taglish) version.
