Financial Analysis Software FAQ

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Common Questions About ReadyRatios Financial Analysis

Who analyzes the data entered: human or program?

The analysis is performed by our program, which allows to obtain results almost instantly. The experience and knowledge of the developers have contributed to the fact that the results of the ReadyRatios financial analysis are almost indistinguishable from the results obtained by humans. We call it "human-like analysis" and follow the motto "Let the computer think!

What countries can the ReadyRatios service be used in?

ReadyRatios financial analysis is suitable for any country with one condition - financial reports must be prepared according to International Financial Reporting Standards (IFRS) or US GAAP. We do not focus on a specific country, but on the standards according to which the financial reports are prepared. Currently, the service can work with financial statements prepared according to IFRS or US GAAP.

What is the most common use of ReadyRatios financial analysis?

Users of ReadyRatios financial analysis mainly perform the following tasks:

  • financial analysis for notes to the financial statements;
  • preparing detailed information about the company for creditors in order to obtain bank loans and other types of external financing;
  • checking the financial status of potential partners (suppliers and customers);
  • control of key financial ratios of one's own company in order to make management decisions;
  • financial analysis of companies during audit and valuation activities.
You said that the user of ReadyRatios does not need knowledge of financial analysis. Who is this service meant for?

You really do not need any special prior training or knowledge of financial analysis to work with ReadyRatios. It is enough to know what the main forms of financial statement look like (Statement of financial position and Statement of comprehensive income) to enter the data into ReadyRatios tables. But it doe not mean that the program is designed exclusively for beginners at financial analysis. The program would also be interesting for experts as they can set formulas of financial rates and their qualitative criteria according to their own requirements.

What type of company is the ReadyRatios financial analysis for?

ReadyRatios financial analysis can be used for any company with the exception of non-profit and financial organizations. Non-profit organizations do not focus on making profit, which makes it impossible to measure their activity according to the efficiency criteria used for commercial organizations. Financial companies (banks, insurance companies, investment companies and funds) are different in structure from industrial companies and companies in sectors such as services and trade. ReadyRatios does not include functions for analyzing the activity of companies in the financial sector.

A commercial version of ReadyRatios financial analysis is successfully used by thousands of companies from various sectors: machine manufacturers, agricultural producers, retail and wholesale organizations, transport companies, power supply organizations, etc. Among our customers are banks that use ReadyRatios to analyze the creditworthiness of borrowers, auditing and consulting companies.

Working with the Software

Our balance sheet looks different from the tables in ReadyRatios, how should I enter the data?

We use financial statement forms that fully comply with the requirements of IFRS and IASB recommended IFRS taxonomy (and FASB requirements for US GAAP statements). This means that you can enter any IFRS or US GAAP financial statement into the ReadyRatios tables. However, you should pay attention to the following points. The IFRS and US GAAP do not set a strict composition of financial statements. Therefore, companies can add their own lines with detailed information on different rates. If your report contains such "additional" lines (i.e. lines that are not mandatory in the IFRS reporting forms and are missing in the ReadyRatios tables), you should proceed as follows:

  1. If an additional line gives more information than the line above (value "including"), simply ignore it. For example:

    Your company's financial report:

    Statement of financial position

    Non-current assets

    Current assets
    Inventories, including
    - merchandise
    - materials and production supplies
    Trade and other current receivables

    The ReadyRatios table does not include the additional lines "Merchandise" and "Materials and Production Supplies", which provide more information about "Inventories". Therefore, you enter only the value of the main line "Inventories" and ignore the additional lines ("Merchandise" and "Materials and Production Supplies").

  2. If an additional line is an independent line that does not detail one of the main lines of the report, add the value to the corresponding main line to which the rate refers according to IFRS. For example:

    Financial report of your company:

    Statement of financial position

    Non-current assets
    Land and buildings
    Investment property

    Current assets

    According to the IFRS (IAS 1), the company describes the cost of property, plant and equipment as a part of non-current assets in a "Statement of financial position", i.e. "Property, plant and equipment" (PPE) is a main line of the report. Therefore, when entering data in the ReadyRatios table, you should sum up the lines "Land and buildings", "Machinery" and "Vehicles", then you will get the value of the line "Property, plant and equipment".
What are the benefits of registering on the ReadyRatios website?

ReadyRatios financial analysis can also be used without registration. But registered users receive access to the following functions:

  • Ability to store initial data and finished reports on the ReadyRatios server
  • Modification of financial rate formulas
  • Changing the ranges of acceptable values of financial rates, including those depending on the industry*.
  • Ability to add desired formulas to the report template*.
  • Communication with colleagues in the ReadyRatios forum

  • * Availability of this feature depends on the selected plan.

    Why does the Statement of Comprehensive Income report have double columns?

    That's because the financial results report always contains information about the current period and the same period last year.

    The data entry process is designed so that the user doesn't have to recalculate anything, just enter the information as it appears in the "paper" statements. If you enter data for several periods, a table may contain the same period twice, because it also appears twice in the "paper" statements: in the statement for the current period and in the statement for the next year.

    But you don't have to enter the same information twice. The table is designed so that when you enter information for the same period, both columns are linked and data is entered in both cells.

    Is it mandatory to always enter data for the last period, i.e. to fill in the right column of the two linked columns of the "Statement of Comprehensive Income" report? No, it's not, you can leave them empty, the program will create the comprehensive analysis anyway. However, the presence of this data can be helpful in making the report more informative.

    I need to analyze consolidated financial statements. How do I enter the data?

    Consolidated financial statements are entered in the same way as individual financial statements. If you have financial statements of a group of companies, they should be summarised in consolidated financial statements according to the rules of IFRS or US GAAP. Then you can use ReadyRatios to analyze the resulting consolidated statements.

    What do I need to install to use ReadyRatios financial analysis?

    There is nothing to download or install to use ReadyRatios. All you need to work with ReadyRatios financial analysis is an Internet connection and a web browser (Chrome , Firefox or others).

    How do I import data from QuickBooks?

    Log in using your existing QuickBooks account on our appication page. After clicking "Connect to QuickBooks," you will be prompted to select your QuickBooks company and authorize the connection. Select the analysis period and click "Import Data". You can also add multiple connections if you need to work with more than one company. The application can also be accessed from the Apps menu in QuickBooks Online. Select ReadyRatios and select Launch from the Action dropdown.

    Methods of Financial Analysis

    Why should I trust the results of ReadyRatios' financial analysis?

    Financial analysis has a very wide scope. The ReadyRatios service focuses on only a small part of this field - the analysis of data from the main forms of financial statements. For the last 15 years we have been developing software to solve exactly this problem. It is quite specialized, but in high demand by users. Our knowledge is based on rich experience in financial audit (our audit company has been operating on the market since 1993) and high professional level of our team is led by a certified auditor with an academic degree in economics. The results of our software are useful information that you can use according to your needs.

    What formula is used to calculate the financial ratio?

    You can find all the formulas used in ReadyRatios financial analysis. To do this, you should proceed as follows: after launching the service, go to the "Settings"->"Formulas" section. In addition, if necessary, you can change any formula and the range of acceptable values.

    You can find general information about financial ratios on our website in the "Reference" section.

    Is an industry benchmark used in the analysis?

    No. The user can set acceptable values of the ratios dependent on the industry, but by default the program uses the criteria common for all industries.

    An industry benchmark is very important for financial analysis. But there are numerous factors which influence the detailed comparative analysis. If you get collections of data for various industries (for example, see “Almanac of Business and Industrial Financial Ratios”), you will see that the average values of ratios depend greatly on the company’s size. Powerful influence is also made by the specifics of the country where the company conducts its’ business, and the way that manufacturing is organised. That is why when evaluating the rates’ values ReadyRatios follows common principles reasonable for successful business without consideration of the country and industry specifics and the company’s size.

    The user should take into account that the analytical results of huge public corporations can be much worse than they look on the stock market. It is connected with the fact that there are specific business rules for such huge companies. Particularly, debt-to-equity ratio in such companies can be much higher than the accepted one.

    You can find benchmarks for US listed companies here.

    Where do I get a range of acceptable values for the financial ratios?

    Acceptable values of ratios in ReadyRatios financial analysis are based on generally accepted values used in the worldwide practice of financial analysis. In addition, we have analyzed statistical data from several countries to make the data more accurate. Acceptable values are set without considering industry specifics. However, the user can differentiate ranges of acceptable values depending on the industry.


    What are the differences between the Free, Master and Expert versions?

    The Free version has limitations compared to the paid version. In particular, reports are not as complete in the free version (numbers in certain sections are replaced by X symbol). Also, you can't change formulas, their attributes and report templates in the free version, which is available in the Expert version. You can find a comparison of versions on  this page

    Is it safe to use a Credit Card to pay for subscribing?

    Yes, because we do not perform any card operations and do not request card numbers. Your payments are processed by a special operator ( specialized in secure payments. This operator also accepts PayPal payments.

    How long after payment will I get access?

    You will get access to your version automatically (instantly), right after your payment is processed.

    Can I get my money back if the program doesn't work for me?

    Free version of our program allows you to try basic program functions before you buy it. We strongly recommend you to try the free version first.

    Nevertheless, you have one week from the date of purchase to make a reasoned request for refund if the program doesn't suit you or you are unable to use it for valid reasons.

    Data Privacy

    Financial privacy is very important to me. Do I have to store my data on the ReadyRatios server?

    We do our best to make your data available only to you. Moreover, you can work with our program and not store the data on our server. The data do not have to be saved at all or they can be saved on your personal computer so that you can quickly upload them to ReadyRatios and continue your work.

    Who gets access to the report data I store on the ReadyRatios server?

    The data stored is available only to you. The site administration has access to all data, but will not use it in any form under the Privacy Policy and Code of Ethics of Auditors. If you wish, you can work with our services without storing the data on our server.

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