The Ratios screen provides key financial metrics that help you assess your business’s efficiency, profitability, and liquidity. These ratios allow you to analyze how well your business is managing its cash flow, expenses, and financial obligations.
Each metric is compared to the previous 30 days, so you can track trends and make informed decisions.
Burn Rate
The amount of money your business spends each month to cover operating expenses.
A lower burn rate means you're managing expenses well.
A higher burn rate suggests your business may need to control spending or increase revenue.
Example:
If your Burn Rate is $11,842 with -40% in red, it means your monthly expenses decreased by 40% compared to last month.
Working Capital
The difference between your current assets and liabilities, showing your short-term financial health.
Positive working capital means you have enough assets to cover short-term debts.
Negative working capital may indicate potential cash flow problems.
Example:
If your Working Capital is $952,509 with +11% in green, it means your available capital increased by 11% from last month, improving short-term liquidity.
Net Profit Margin
The percentage of revenue that turns into profit after all expenses are deducted.
A higher net profit margin means your business is generating good profits.
A lower or negative net profit margin suggests that expenses may be too high compared to revenue.
Example:
If your Net Profit Margin is $-32 with -147% in red, it means your profitability declined significantly compared to last month.
Inventory Turnover Ratio
How many times your inventory is sold and replaced over a given period.
A higher ratio means your inventory is selling quickly.
A lower ratio suggests slow-moving inventory, which could tie up cash.
Example:
If your Inventory Turnover Ratio is $0, it means no inventory has been sold or recorded in this period.
Capital Expenditures (CapEx)
The amount of money spent on long-term assets like equipment, property, or technology.
High CapEx means you're investing in future business growth.
Low CapEx suggests minimal reinvestment in assets.
Example:
If your Capital Expenditures are $9,746 with -83% in red, it means your investments in assets dropped significantly compared to last month.
Quick Ratio (Acid-Test Ratio)
A measure of your business’s ability to pay short-term liabilities using only its most liquid assets (cash, receivables, etc.).
A higher ratio indicates strong short-term financial health.
A low or zero ratio means your business may struggle to cover short-term expenses.
Example:
If your Quick Ratio is $0, it means your business currently has no liquid assets recorded to cover short-term debts.
Account Receivable
The total amount of money customers owe your business for unpaid invoices.
Higher receivables mean more outstanding payments.
Lower receivables indicate better cash collection.
Example:
If Account Receivable is $0, it means no outstanding invoices were recorded for this period.
Days of Inventory on Hand
The average number of days it takes to sell your inventory.
A lower number means inventory is selling quickly.
A higher number suggests excess stock, which could lead to cash flow issues.
Example:
If your Days of Inventory on Hand is 0 Days, it means no inventory transactions were recorded this month.
Account Payable
The total amount your business owes to suppliers and vendors for unpaid bills.
Higher payables mean more outstanding debts.
Lower payables indicate that bills are being paid on time.
Example:
If Account Payable is $0, it means no outstanding bills were recorded this month.
Why This Matters
Tracking your financial ratios helps you:
✅ Evaluate your business’s efficiency and profitability.
✅ Understand if your cash flow is strong or needs improvement.
✅ Identify areas where you need to cut costs or increase revenue.
Finoya keeps your financial data updated weekly, so you always have a clear and accurate view of your cash flow. The top bar shows the last sync date and the next scheduled update, ensuring you're working with the latest insights to manage your business finances effectively.