Accountant Financial Ratio Analysis Report
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Create a financial ratio analysis report for [Company Name] for [period].

Company details:
- Company: [name]
- Industry: [type]
- Period: [year or quarter]
- Revenue: $[amount]
- Total assets: $[amount]
- Industry benchmarks available: [yes/no]

FINANCIAL RATIO ANALYSIS

LIQUIDITY RATIOS

Current Ratio
- Formula: Current Assets / Current Liabilities
- Company result: [X.X]
- Benchmark: [1.5-2.0 typical]
- Interpretation: [above/below/at benchmark]
- What it means: [ability to pay short-term obligations]

Quick Ratio (Acid Test)
- Formula: (Cash + AR) / Current Liabilities
- Company result: [X.X]
- Benchmark: [1.0 or above]
- Interpretation: [describe]

Cash Ratio
- Formula: Cash / Current Liabilities
- Company result: [X.X]
- Interpretation: [describe]

PROFITABILITY RATIOS

Gross Profit Margin
- Formula: Gross Profit / Revenue
- Company: [%]
- Industry average: [%]
- Trend: [improving/declining/stable]

Operating Profit Margin
- Company: [%]
- Industry: [%]
- Interpretation: [describe]

Net Profit Margin
- Company: [%]
- Industry: [%]
- Interpretation: [describe]

Return on Assets (ROA)
- Formula: Net Income / Total Assets
- Company: [%]
- Benchmark: [varies by industry]

Return on Equity (ROE)
- Formula: Net Income / Shareholders Equity
- Company: [%]
- Interpretation: [describe]

EFFICIENCY RATIOS

Days Sales Outstanding (DSO)
- Formula: AR / (Revenue/365)
- Company: [days]
- Target: [net terms + 10-15 days]
- Action if high: [collections focus]

Inventory Turnover (if applicable)
- Formula: COGS / Average Inventory
- Company: [X times]
- Industry: [X times]

Days Payable Outstanding
- Company: [days]
- Optimal: [maximize without damaging relationships]

LEVERAGE RATIOS

Debt to Equity
- Company: [X.X]
- Benchmark: [varies by industry]
- Risk level: [low/moderate/high]

Debt Service Coverage
- Formula: EBITDA / Debt Service
- Company: [X.X]
- Bank requirement typically: [1.25x minimum]

OVERALL ASSESSMENT
- Strengths: [list]
- Areas of concern: [list]
- Priority recommendations: [list]

Source: https://promptzyo.com/prompt/accountant-financial-ratio-analysis-report