Financial Analysis Software FAQ

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Common Questions About ReadyRatios Financial Analysis

Who analyses the data entered: human or program?

Analysis is carried out by a program which allows results to be obtained almost instantly. The experience and knowledge of developers has helped to achieve the results of ReadyRatios financial analysis which are almost indistinguishable from results obtained by humans. We call it “humanlike analysis” and follow the motto “Make the computer think!”

What countries can the ReadyRatios service be used in?

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

For what purpose is ReadyRatios financial analysis used on most often?

Users of ReadyRatios financial analysis mainly cope with the following tasks:

  • a financial analysis for a notes to financial statement
  • preparation of detailed information on the company for creditors to obtain bank credits and other types of borrowing
  • a check of the financial state of potential partners (suppliers and customers)
  • control of key financial rates of the own company to make management decisions
  • financial analysis of companies during auditing 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 company is the ReadyRatios financial analysis made for?

ReadyRatios financial analysis can be used for any company with the exception of non-profit organisations and organisations from the financial sector. Non-profit organisations do not focus on gaining profit which makes it impossible to measure their activity based on the criteria of efficiency used for commercial organisations. Companies from the financial sector (banks, insurance companies, investment companies and funds) differ through their structure from industrial companies and companies from such spheres as services and trade. ReadyRatios does not include features to analyse the activity of companies from the financial sector.

A commercial version of ReadyRatios financial analysis is successfully used by over 1200 companies from various fields: machine manufacturers, agricultural manufacturers, retail and wholesale organisations, transport companies, power supply organisations etc. There are banks among our customers that use ReadyRatios to analyse the creditworthiness of borrowers, auditing and consulting companies.

Working with the Software

Our company statement looks different from the tables in ReadyRatios, how should I enter data?

We use financial reporting forms which completely meet the requirements of the IFRS and recommended IASB through IFRS Taxonomy (and FASB requirements for US GAAP statements). It means you can enter any statement made according to the IFRS or US GAAP in the ReadyRatios tables. But you should draw attention to the following. The IFRS and US GAAP do not set a strict composition of financial statement. That is why companies can add their own lines with detailed information on different rates. If your report includes such “additional” lines (i.e. lines, which are not obligatory in the reporting forms according to the IFRS and which are absent in the ReadyRatios tables), you should act in the following way:

  1. If an additional line gives more information on the line above (value “including”), just ignore it. For example:

    Financial report of your company:

    Statement of financial position

    Non-current assets

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

    The table of ReadyRatios does not include the additional lines “merchandise” and “materials and production supplies”, which give more information on “Inventories”. That is why you only enter 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 but 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 the 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. That is why when you enter data in the ReadyRatios table, you should sum up the lines “Land and buildings”, “Machinery” and “Vehicles”, after that you will get the value of the “Property, plant and equipment” line.
What benefits do I get after registration on the ReadyRatios web-site?

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

  • an opportunity to save the initial data and ready reports on the ReadyRatios server
  • change of formulas of financial rates*
  • change of ranges of acceptable values of the financial rates, including those dependent to the industry*
  • the capability to add desirable formulas to the report template*
  • communication with colleagues on the ReadyRatios forum
* Availability of this function depends on the plan chosen.
Why does “Statement of comprehensive income” report have the doubled columns?

That’s because the financial results report always contain information about the current period and the same period of last year.

Data input process is made so that user doesn’t have to recalculate anything, he just inputs information as it is in the “paper” statements. If you input data for several periods, a table can contain the same period twice, because it appears twice in the “paper” statements too: in the current period statement and in the next year statement.

But you won’t have to input the same information twice. The table is made so that when you input information for the same period, it links both columns and puts data into both cells.

Is it obligatory to always input data for the last period, i.e. fill the right column of the two linked columns of the “Statement of comprehensive income” report? No, it’s not, you may leave them empty, program will produce the comprehensive analysis anyway. But presence of this data may be helpful in making more informative report.
I need to analyse consolidated statements. How can I enter the data?

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

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

To use ReadyRatios you do not need to download or install anything. All you need to work with ReadyRatios financial analysis is an Internet connection and a web-browser (Internet Explorer, Firefox, Chrome or other).

How do I import data from QuickBooks?

Sign in using your existing QuickBooks account on our app page. After clicking "Connect to QuickBooks" you will be prompted to choose 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 app can also be accessed from the Apps menu in QuickBooks Online. Select ReadyRatios and in the Action dropdown select Launch.

Methods of Financial Analysis

Why should I trust the results of ReadyRatios financial analysis?

Financial analysis has a very wide area of expertise. ReadyRatios service focuses only on a small part of this area – analysis by data of the key forms of financial statements. During the last five years we have developed software to solve this very issue. It is quite specialised but in high demand by users. Our knowledge is sustained with a rich experience in auditing (our auditing company worked in the market for 18 years) and the high professional level of our team is led by a certified auditor with an academic degree in economics. The results given by our program are not a dogma, but helpful information which 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 that you should act in the following away: after launching the service, go to the section “Settings”->”Formulas”. Additionally, when required, you can change any formula and range of acceptable values.

You can learn common information on financial ratios on our web-site in the "Reference" section.

Is an industry benchmark used during 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.

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

Acceptable values of the ratios in ReadyRatios financial analysis are based on generally accepted values used in the worldwide practice of financial analysis. Moreover, we have carried out analysis of statistical data of several countries to make the data more precise. Acceptable values are set without consideration of industry specifics. But the user can differentiate ranges of acceptable values dependent on the industry.


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

Free version has limitations in comparison with paid ones. In particular, reports are not so full in free version (numbers in certain sections are replaced with X symbol). Also you can’t change formulas, their attributes and report templates using Free version as it's available in Expert version. You can find versions comparison at this page

Is it safe to pay for subscription with a plastic card?

It is, because we do not carry out any card operations and do not request card numbers. Your payments are processed by (2CO) operator, which is specialized on protected payments. This operator also receives PayPal payments. 

In what time after payment I will get access to the chosen version?

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

Can I get my money back if program won’t suit me?

You can try basic program functions with Free version of our program before buying it. We strongly recommend you to try Free version first.

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

Data Privacy

Who gets access to the report data that I save on the ReadyRatios server?
The saved data will be available only to you. The web-site administration has access to all data but shall not use it in any form under the Privacy Policy and Ethics code of auditors. If you wish, you can work with our services not saving the data on our server.
Privacy of financial data is of high importance for me. Do I have to save data on the ReadyRatios server?

We do everything possible to make your data available only to you. But you can work with our program and not save the on our server. The data does not have to be saved at all or it can be saved on your personal computer so that you can quickly upload it to ReadyRatios and continue your work. 

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