Financial Ratio Analysis
Computes 14 standard ratios via the deterministic engine and interprets them with industry-aware benchmarks — not blind rules.
Ratio Groups
- Liquidity:
currentRatio, quickRatio, cashRatio — ability to pay short-term obligations.
- Solvency:
debtToEquity.
- Profitability:
grossMargin, netMargin, roa, roe.
- Efficiency:
inventoryTurnover, receivablesTurnover, daysSalesOutstanding (DSO), daysPayablesOutstanding (DPO), daysInventoryOutstanding (DIO), cashConversionCycle (CCC).
Conservative SME Benchmarks (industry-dependent, not statutory)
- Current ratio ≥ 1.5; quick ratio ≥ 1.0; cash ratio ≥ 0.2.
- Debt/Equity < 2.0 for non-capital-intensive SMEs.
- Gross margin varies greatly by industry — compare against your own trend and competitors, not a single absolute figure.
- A positive CCC means working capital is tied up — compare with the industry payment cycle.
Hybrid Execution Model
Pass the balance sheet & income statement to engines/financial-ratios.js (14 functions). Wrap the output in a Trust Envelope containing the standard basis (PSAK 1), risk_level: MEDIUM, requires_human_review: true for credit support, as_of report date.
Scope & Safety
- Use for: financial health checks, SME credit worthiness, cross-phase performance monitoring.
- Do not use for: a substitute for audited financial statements, stock valuation, large investment decisions without qualitative analysis.
- Ratios are historical (not predictive) — always combine with forward-looking assumptions.
- A zero divisor will throw an engine error — make sure data is complete before execution.
Worked Example
Input: CA 500 million, CL 250 million, inventory 150 million, cash 80 million, TL 600 million, TE 400 million; revenue 1.2 billion, COGS 800 million, NI 120 million; TA 1 billion; avg inventory 200 million, avg receivables 150 million, avg payables 100 million.
Output: currentRatio 2.0, quickRatio 1.4, cashRatio 0.32, D/E 1.5, grossMargin 0.3333, netMargin 0.1, ROA 0.12, ROE 0.3, turnover 4.0×/8.0×, DSO 45.6 days, DPO 45.6 days, DIO 91.3 days, CCC 91.3 days.
Interpretation: liquidity is safe, solvency moderate, turnover healthy; ~3 months of working capital is currently tied up — consistent with the working-capital skill.
1---2name: financial-ratio-analysis3description: Compute and interpret 14 liquidity, solvency, profitability, and efficiency ratios for Indonesian SMEs using the deterministic financial-ratios engine.4---56# Financial Ratio Analysis78Computes 14 standard ratios via the deterministic engine and interprets them with industry-aware benchmarks — not blind rules.910## Ratio Groups111. **Liquidity**: `currentRatio`, `quickRatio`, `cashRatio` — ability to pay short-term obligations.122. **Solvency**: `debtToEquity`.133. **Profitability**: `grossMargin`, `netMargin`, `roa`, `roe`.144. **Efficiency**: `inventoryTurnover`, `receivablesTurnover`, `daysSalesOutstanding` (DSO), `daysPayablesOutstanding` (DPO), `daysInventoryOutstanding` (DIO), `cashConversionCycle` (CCC).1516## Conservative SME Benchmarks (industry-dependent, not statutory)17* Current ratio ≥ 1.5; quick ratio ≥ 1.0; cash ratio ≥ 0.2.18* Debt/Equity < 2.0 for non-capital-intensive SMEs.19* Gross margin varies greatly by industry — compare against your own trend and competitors, not a single absolute figure.20* A positive CCC means working capital is tied up — compare with the industry payment cycle.2122## Hybrid Execution Model23Pass the balance sheet & income statement to `engines/financial-ratios.js` (14 functions). Wrap the output in a Trust Envelope containing the standard basis (PSAK 1), `risk_level: MEDIUM`, `requires_human_review: true` for credit support, `as_of` report date.2425## Scope & Safety26* **Use for**: financial health checks, SME credit worthiness, cross-phase performance monitoring.27* **Do not use for**: a substitute for audited financial statements, stock valuation, large investment decisions without qualitative analysis.28* Ratios are historical (not predictive) — always combine with forward-looking assumptions.29* A zero divisor will throw an engine error — make sure data is complete before execution.3031## Worked Example32Input: CA 500 million, CL 250 million, inventory 150 million, cash 80 million, TL 600 million, TE 400 million; revenue 1.2 billion, COGS 800 million, NI 120 million; TA 1 billion; avg inventory 200 million, avg receivables 150 million, avg payables 100 million.33Output: currentRatio 2.0, quickRatio 1.4, cashRatio 0.32, D/E 1.5, grossMargin 0.3333, netMargin 0.1, ROA 0.12, ROE 0.3, turnover 4.0×/8.0×, DSO 45.6 days, DPO 45.6 days, DIO 91.3 days, CCC 91.3 days.34Interpretation: liquidity is safe, solvency moderate, turnover healthy; ~3 months of working capital is currently tied up — consistent with the working-capital skill.
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