Configuring Financial Analysis Ratios

You can configure out-of-the-box Ratio configurations using defined financial metrics to financial statements, or create custom Ratio configurations with comparitive values and percentages based on industry standards and tailed to your organizational needs.

As part of the configuration process, you can define ratios in the Ratios configuration page and then add them to Financial Statement analysis, or you can create separate ratio configurations. Out-of-the-box ratios or custom expressions that are attached to a Financial Statement are run automatically when the respective Financial Statement is run and are displayed on the Analysis page under the Ratios section. Any ratio or custom expression that is not attached to a Financial Statement can be reviewed separately on the Detailed Analysis page.

You can define or select a benchmark range based on industry-specific standards. You can specify range values as whole numbers or as percentages. The selectable range can span any value between 0 and 100. This enables you to compare the calculated values and the standard benchmark range, helping identify variances and assess financial performance.

To configure Ratios:

1. On the Home page, click Financial Analysis Hub, then select Configuration.

   The Configuration page is displayed with a list of available configurations.

2. Click Create.

3. On the Types tab, from Analysis Type, select Ratio.

4. Enter a Name, and a Description for the configuration, then click Next.

5. On the Settings tab, for POV Selection, use the Member Selector to select members for the POV, or use the default members if provided., then click Next.

   Note that the Consol cube is selected by default, and cannot be changed.

6. On the Options tab, from Expression Details, if you selected an out-of-the-box ratio, the formula is populated. You can also create your own formula, or add Dimensions from the Fixed Dimension list if required.

   As a best practice, if you want to connect the Ratios with any of the Financial Statements, the POV should be the same as the POV in the Financial Statement, for consistency in analyzing the results.

7. From Value Comparison Algorithm, select an algorithm, for example Absolute Value or Gross Profit Margin Ratio, then select a range. You can use sliders to select a range, based on the industry or your own standard, with which to compare your current position on Financial Statements.

8. When you have finished creating a configuration, click Save.

   The configuration is then displayed on the main Configurations page list of available configurations.