Ratios
The Ratios tab — nearly 50 ratios in six families, the exact calculation of each, averages and annualised figures, and why the group shows a sum of companies instead of eliminations.
On this page
The Ratios tab of Reports calculates nearly 50 financial ratios from the same P&L, balance sheet and cash flow you see on the other tabs, for each company, their sum and the group, in every column you choose.
The six families
| Family | Ratios |
|---|---|
| Activity | Receivables turnover, Days sales outstanding (DSO), Inventory turnover, Days inventory on hand (DIO), Payables turnover, Days payables outstanding (DPO), Cash conversion cycle, Working-capital turnover, Fixed-asset turnover, Total-asset turnover |
| Liquidity | Current ratio, Quick ratio, Cash ratio, Defensive interval |
| Solvency | Financial debt, Total debt incl. intercompany, Net debt, Net debt incl. shareholder loans, Debt to assets, Debt to capital, Debt to equity, Equity ratio, Financial leverage, Finance-cost cover (EBIT), Finance-cost cover (EBITDA), Net debt / EBITDA, Net debt incl. shareholder loans / EBITDA |
| Profitability | Gross margin, EBITDA margin, Operating (EBIT) margin, Pretax margin, Net margin, Return on assets (ROA), Operating return on assets, Return on equity (ROE), Return on capital employed (ROCE) |
| Cash flow | Cash flow to revenue, Cash return on assets, Cash to income, Debt coverage, Reinvestment, Free cash flow margin (simple FCF) |
| DuPont | Tax burden, Interest burden, EBIT margin, Asset turnover, Leverage, ROE (3-step) = net margin × turnover × leverage, ROE (5-step) |
Each ratio has one format: percentages with one decimal (12.3 %), multiples with two decimals and × (1.82×), days as whole days (45 d), and the debt amounts as amounts in the report's currency.
Exact calculations
Textbooks define some of these ratios in several ways. This table is the calculation the application uses. The names are the lines of the group's P&L, balance sheet and cash flow. Average and annualised are explained in the next sections; a figure marked as a positive amount is a cost or an outflow taken without its minus sign.
| Ratio | Calculation | Shown as |
|---|---|---|
| Receivables turnover | annualised Total revenue / average Trade & other receivables | × |
| Days sales outstanding (DSO) | average Trade & other receivables × 365 / annualised Total revenue | days |
| Inventory turnover | annualised Total direct costs (as a positive amount) / average Inventories | × |
| Days inventory on hand (DIO) | average Inventories × 365 / annualised Total direct costs (as a positive amount) | days |
| Payables turnover | annualised Total direct costs (as a positive amount) / average Trade payables | × |
| Days payables outstanding (DPO) | average Trade payables × 365 / annualised Total direct costs (as a positive amount) | days |
| Cash conversion cycle | DSO + DIO − DPO | days |
| Working-capital turnover | annualised Total revenue / average (Total current assets − Total current liabilities) | × |
| Fixed-asset turnover | annualised Total revenue / average (Property, plant & equipment + Right-of-use assets) | × |
| Total-asset turnover | annualised Total revenue / average Total assets | × |
| Current ratio | Total current assets / Total current liabilities | × |
| Quick ratio | (Cash & cash equivalents + Trade & other receivables) / Total current liabilities | × |
| Cash ratio | Cash & cash equivalents / Total current liabilities | × |
| Defensive interval | (Cash & cash equivalents + Trade & other receivables) × 365 / annualised (Total direct costs + Total operating expenses, as a positive amount) | days |
| Financial debt | Bank loans (non-current) + Bonds & notes issued + Short-term borrowings & current portion of long-term debt | amount |
| Total debt incl. intercompany | Financial debt + Intercompany loans payable (non-current) + Loans from shareholders & related parties + Other non-current liabilities (incl. leases) | amount |
| Net debt | Financial debt − Cash & cash equivalents | amount |
| Net debt incl. shareholder loans | Net debt + Loans from shareholders & related parties | amount |
| Debt to assets | Total debt incl. intercompany / Total assets | % |
| Debt to capital | Total debt incl. intercompany / (Total debt incl. intercompany + Total equity) | % |
| Debt to equity | Total debt incl. intercompany / Total equity | × |
| Equity ratio | Total equity / Total assets | % |
| Financial leverage | average Total assets / average Total equity | × |
| Finance-cost cover (EBIT) | Operating profit (EBIT) / Finance costs (as a positive amount) | × |
| Finance-cost cover (EBITDA) | EBITDA / Finance costs (as a positive amount) | × |
| Net debt / EBITDA | Net debt / annualised EBITDA | × |
| Net debt incl. shareholder loans / EBITDA | Net debt incl. shareholder loans / annualised EBITDA | × |
| Gross margin | Gross profit / contribution / Total revenue | % |
| EBITDA margin | EBITDA / Total revenue | % |
| Operating (EBIT) margin | Operating profit (EBIT) / Total revenue | % |
| Pretax margin | Profit before tax / Total revenue | % |
| Net margin | Net profit / (loss) after tax / Total revenue | % |
| Return on assets (ROA) | annualised Net profit / (loss) after tax / average Total assets | % |
| Operating return on assets | annualised Operating profit (EBIT) / average Total assets | % |
| Return on equity (ROE) | annualised Net profit / (loss) after tax / average Total equity | % |
| Return on capital employed (ROCE) | annualised Operating profit (EBIT) / average (Total assets − Total current liabilities) | % |
| Cash flow to revenue | Cash flow from operations / Total revenue | % |
| Cash return on assets | annualised Cash flow from operations / average Total assets | % |
| Cash to income | Cash flow from operations / Operating profit (EBIT) | × |
| Debt coverage | annualised Cash flow from operations / Total debt incl. intercompany | % |
| Reinvestment | Cash flow from operations / (Purchase of intangible assets + Purchase of property, plant & equipment, as a positive amount) | × |
| Free cash flow margin (simple FCF) | Free cash flow (the cash flow line: cash flow from operations plus the whole investing section) / Total revenue | % |
| Tax burden | Net profit / (loss) after tax / Profit before tax | × |
| Interest burden | Profit before tax / Operating profit (EBIT) | × |
| EBIT margin | the same as Operating (EBIT) margin | % |
| Asset turnover | the same as Total-asset turnover | × |
| Leverage | the same as Financial leverage | × |
| ROE (3-step) | Net margin × Total-asset turnover × Financial leverage | % |
| ROE (5-step) | Tax burden × Interest burden × EBIT margin × Asset turnover × Leverage | % |
Both DuPont products come back to Return on equity (ROE), because they multiply the same figures.
See how a ratio is calculated
Click the name of a ratio in the first column. A line opens below it with:
- the formula in words, for example Receivables turnover = annualised Total revenue / average of Trade & other receivables, with a short note on how to read it;
- for every column, the figures used and the result, for example Hotel Aurora Karlín s.r.o. · January 2026 – September 2026: 140 757 479 / 4 498 729 = 31.29×. A cell that has no reading shows its reason here too.
Click the name again to close it.
Averages and annualised figures
- Average balances (in turnovers, days, returns and leverage) are the mean of two balance-sheet figures: the balance at the end of the month before the column starts, and the balance at the column's end. For a column that starts in the first month of a fiscal year, the first figure is the opening balance of that year. Only when a column starts at the beginning of a company's first fiscal year in CFO Panorama and the books delivered no opening balances is the closing balance used instead; such cells are marked ◦ and Notes says so. In a sum-of-companies or group column, one company without opening balances is enough for the mark.
- Annualised flows: for a period shorter than a fiscal year (for example January–September) a P&L or cash-flow figure is multiplied by the days of the fiscal year and divided by the calendar days of the column, so turnovers, days and returns can be compared with full years. Ratios of two flows, such as margins and cover ratios, are not annualised: the period cancels out.
Companies, sum and group
A ratio is never added up. Each column's ratio is calculated on that column's own statements: the sum of companies on the summed statements, the group on the consolidated statements.
There is no Eliminations column on this tab, because a ratio of eliminations means nothing. With the Companies view Each + sum of companies (before eliminations) + group, the sum of companies takes its place, so you can compare the companies added up with the consolidated group.
When a ratio shows no figure
Point at the text to see the reason.
- — — there is nothing to divide by: a divisor of zero (for example no revenue, no debt or no finance costs), or no average balance for a turnover or days ratio (for example no receivables in the period).
- n.m. — not meaningful: the figures exist but the result has no sensible reading. This applies to Debt to equity, Financial leverage, both finance-cost covers, ROE, ROCE, Cash to income, Reinvestment, Tax burden and Interest burden, and the two net debt / EBITDA ratios, when the divisor is negative (for example a return on negative equity) or too small for a stable result (under 1 % of revenue for a P&L or cash-flow divisor, under 1 % of total assets for a balance-sheet divisor; the finance-cost covers and Reinvestment, whose divisors cannot turn negative, are exempt from this floor). A ratio built from another ratio that shows no figure (for example the cash conversion cycle when DSO shows —) and the Δ of such a ratio also show n.m.
- net cash with an amount, for example net cash 19.7 m — net debt / EBITDA (or the variant with shareholder loans) when net debt is zero or negative: the company holds more cash than debt.
- not available — an input is missing, for example a line the books do not have for that column.
Good to know
- The Change filter offers Δ (the difference in the ratio) or none; a percentage change of a percentage is not shown. The Δ of a percentage ratio is in percentage points (pp). Where a ratio has a better direction (a higher margin, fewer days of receivables), its Δ is green when it improved and red when it worsened; ratios without a better direction (payables turnover, DPO, leverage, tax and interest burden, the debt amounts) are not coloured.
- The tab has no signs, dimensions, show-as or row options: every ratio is shown, as calculated.
- Ratios do not drill down; the explainer under a ratio's name shows the figures it used.
- Net debt here reads the balance sheet: bank loans, bonds and short-term borrowings less cash. The cash flow's net-debt reconciliation selects the debt by type of account — bank loans, overdrafts, bonds and leases — so its Net bank debt at end can differ, for example when the company has leases. See Cash flow.
Did not find what you need? Write to erik@cfopanorama.com.