Ratio FO Type

The software offers the ability to create custom ratios. Ratios are unique because of the way roll-ups are handled; with ratios, the numerator and the denominator are treated individually as either flow or level line items. This capability allows ratios such as ROA (Net Income / Total Assets) to yield the correct result by allowing the numerator to roll up as a Flow line item and the denominator to roll up as a Level line item.

New ratios are created in the User Defined section in a Ratio Group. (Note: There needs to be a Ratio Group in User Defined before a ratio can be created within it). Ratios can be created to be displayed as a:

  • Percentage (e.g. Net Profit % of Revenue)
  • Currency (e.g. Earnings per Share)
  • Other (e.g. Inventory Turnover)

 

  1. Right-click and within the Add menu select Basic Ratio.
  2. Title the ratio.
  3. Click Numeration Value, mouse over the Add menu and add either a Value Layer or Formula Layer to define numerator value for the ratio.
  4. Click Denominator Value, mouse over the Add menu and add either a Value Layer or Formula Layer to define denominator value for the ratio.
  5. For Numerator Type, select from the following:
    1. End Value (Instant) - the last value of an Instant Period In a rollup, returns the value of the last period line item.
    2. Average Value ((Instant) the average of an Instant Period In a rollup, returns the value of the last period line item over the span of time of a rollup.
    3. Annualized Duration - e.g. the monthly value times 365 divided by 31 days.
    4. Period Duration - e.g. the value in the Period A Period is used in a number of ways depending on context. In an Annual model, a period is 1 year. In a monthly model, a period is one month. When used as a start of a projection, it refers to the beginning of the period and when used as the end of a projection it is the end of the period..
    5. Weekly Duration - e.g. the monthly value times 7 days divided by 31 days.
    6. Daily Duration - e.g. the monthly value divided by 31 days.
      • For example, you might use 'daily' for calculating Days Sales Outstanding.
  1. For Denominator Type, select from the following:
    1. End Value (Instant) - the last value of an Instant Period In a rollup, returns the value of the last period line item.
    2. Average Value ((Instant) the average of an Instant Period In a rollup, returns the value of the last period line item over the span of time of a rollup.
    3. Annualized Duration - e.g. the monthly value times 365 divided by 31 days.
    4. Period Duration - e.g. the value in the Period A Period is used in a number of ways depending on context. In an Annual model, a period is 1 year. In a monthly model, a period is one month. When used as a start of a projection, it refers to the beginning of the period and when used as the end of a projection it is the end of the period..
    5. Weekly Duration - e.g. the monthly value times 7 days divided by 31 days.
    6. Daily Duration - e.g. the monthly value divided by 31 days.
      • For example, you might use 'daily' for calculating Days Sales Outstanding.