Business Analysis Tools

Ratio

What does it do?

How to calculate

Current

Measures the financial health of your business. A Healthy Business results in 2+

Divide your Total Assets by your Total Liabilities

Quick

Measures your business liquidity. The optimal result is 1+

Divide your Current Assets (less stock) by your Current Liabilities

Stock Turnover

Many Practices are now selling products and often cash can be tied up in unsold stock.

Cost of goods sold divided by the average value of stock

Average Fees Earned by Practitioners

Individual Practitioners can compare their fees earned with average fees earned

Total Fees earned in a given period divided by the number of Fee Earning Practitioners

Average Fees Earned by all Personnel

Staff members can see a result from their efforts and share in the rewards

Total Fees earned in a given period divided by the number of Personnel

Average Hourly Income

Calculates the average hourly income

Total Fees earned in a given period divided by the total Working Hours of Fee Earning Practitioners

Average Hourly Expense

Calculates the average hourly expense

Total Expenses in a given period divided by the Total Working Hours

Average Daily Expense

Calculates the average daily expense for running your business

Total Expenses in a given period divided by the Total Working Days

Break Even

Take the Average Hourly Income and see how many hours you need to work to cover the expenses for the day. Once the expenses are covered, the income to end of day is then profit.

Calculate this for the week instead of the Day and you might be more relaxed about having a day off.