revfactory Financial Ratio Analyzer — Financial Ratio Deep Analysis Tool
A specialized skill that enhances the financial analysis capabilities of the financial-analyst agent.
Target Agent
- financial-analyst — Uses this skill's framework during financial ratio analysis
5 Financial Ratio Categories
1. Profitability Ratios
| Ratio | Formula | Interpretation Criteria | Industry Benchmarks |
|---|---|---|---|
| Gross Margin | (Revenue - COGS) / Revenue x 100 | 40%+ Excellent | SaaS 70-80%, Manufacturing 25-35% |
| Operating Margin | Operating Income / Revenue x 100 | 15%+ Good | SaaS 20-30%, Retail 3-5% |
| Net Margin | Net Income / Revenue x 100 | 10%+ Healthy | SaaS 15-25%, Construction 2-4% |
| ROE | Net Income / Equity x 100 | 15%+ Target | Industry Average 10-12% |
| ROA | Net Income / Total Assets x 100 | 5%+ Healthy | Finance 0.5-1%, IT 8-15% |
| ROIC | NOPAT / Invested Capital x 100 | Value creation when exceeding WACC | WACC+3%p+ Excellent |
2. Liquidity Ratios
| Ratio | Formula | Safety Criteria |
|---|---|---|
| Current Ratio | Current Assets / Current Liabilities | 150-200% Good |
| Quick Ratio | (Current Assets - Inventory) / Current Liabilities | 100%+ Healthy |
| Cash Ratio | Cash & Equivalents / Current Liabilities | 20%+ Minimum |
| Cash Runway | Cash / Monthly Burn Rate | 18+ months recommended for startups |
3. Leverage Ratios
| Ratio | Formula | Warning Level |
|---|---|---|
| Debt-to-Equity | Total Debt / Equity x 100 | Caution above 200% |
| Interest Coverage | EBIT / Interest Expense | Risk below 3x |
| Net Debt/EBITDA | (Debt - Cash) / EBITDA | Caution above 3x |
| Equity Ratio | Equity / Total Assets x 100 | 30%+ Healthy |
4. Efficiency Ratios
| Ratio | Formula | Improvement Direction |
|---|---|---|
| Receivables Turnover | Revenue / Average Receivables | Higher is better |
| Inventory Turnover | COGS / Average Inventory | Varies by industry |
| CCC (Cash Conversion Cycle) | DSO + DIO - DPO | Lower is better |
5. Growth Ratios
| Ratio | Formula | Startup Criteria |
|---|---|---|
| Revenue Growth | (Current - Prior) / Prior x 100 | T2D3: 3x→3x→2x→2x→2x |
| EPS Growth | (Current EPS - Prior EPS) / Prior EPS x 100 | Public 15%+ Excellent |
DuPont Analysis Framework
Decompose ROE into 3 components to identify root causes of profitability:
ROE = Net Margin x Asset Turnover x Financial Leverage
= (Net Income/Revenue) x (Revenue/Total Assets) x (Total Assets/Equity)
5-Factor DuPont Extension:
ROE = Tax Burden x Interest Burden x Operating Margin x Asset Turnover x Leverage
= (NI/EBT) x (EBT/EBIT) x (EBIT/Revenue) x (Revenue/Total Assets) x (Total Assets/Equity)
SaaS-Specific Metrics
| Metric | Formula | Health Criteria |
|---|---|---|
| ARR | MRR x 12 | YoY 100%+ growth (early stage) |
| NRR | (Beginning MRR + Expansion - Contraction - Churn) / Beginning MRR | 115%+ Excellent |
| LTV | ARPA x Gross Margin / Monthly Churn Rate | LTV/CAC > 3x |
| CAC | Sales & Marketing Expense / New Customers | Payback < 18 months |
| Rule of 40 | Revenue Growth Rate (%) + Operating Margin (%) | 40%+ Target |
| Magic Number | Net New ARR / Prior Quarter S&M Expense | 0.75+ Good |
| Burn Multiple | Net Burn / Net New ARR | Below 1.5x Efficient |
Ratios to Emphasize by Investor Type
| Investor Type | Key Ratios of Interest | Framing |
|---|---|---|
| VC (Early) | Growth Rate, Burn Rate, Runway | Emphasize growth potential |
| VC (Late) | Unit Economics, Rule of 40 | Prove efficient growth |
| PE | EBITDA Margin, FCF, ROIC | Emphasize cash generation |
| Public Shareholders | EPS, ROE, Dividend Yield | Shareholder value return |
| Creditors | Interest Coverage, Debt-to-Equity | Emphasize repayment stability |
Analysis Report Writing Principles
- Period-over-Period Variance Analysis — QoQ/YoY changes and causes for each ratio
- Industry Benchmark Comparison — Positioning vs. peer top/bottom 25%
- Warning Flags — Auto-highlight items deviating from threshold values
- Trend Interpretation — Derive patterns from 3-5 quarter trends