Definitions
This measure compares the totals of the current assets and current liabilities. The higher the current ratio, the greater the 'cushion' between current obligations and the business's ability to pay them.
What is Current Ratio?
This section of the CycleScape reports can help determine if purchasing new equipment makes sense.
What is the Smart Assets Moves section?
Total Current Assets / Total Current Liabilities
What is the current ratio?
For all companies, what should the % of revenue remaining be after subtracting all direct costs?
What is 50% (Gross Profit)?
It means there is room for improvement compared to the industry benchmark.
What does percentile 1 & 2 mean?
Proportion of the company's total debts to its total assets. A higher ratio means a large portion of the company assets are financed by debt, indicating higher financial risk.
What is Liabilities to Assets?
You can look here when the client asks how much Uncle Sam is going to want for taxes this Spring.
What is Savings for Taxes?
Revenue / Direct Labor Hours
What is Revenue per Hour?
The target return on fixed assets across all divisions.
What is 40%?
A higher number for this metric indicates that it takes longer to collect accounts receivable.
What are Accounts Receivable Days?
This financial metric measures the profitability and efficiency of these assets. It evaluates how effectively the company generates income from its investment in fixed assets.
What is Return on Fixed Assets?
A client is struggling to capture overhead expenses in their invoicing. This metric found in the "Estimating Corner" of the report might prove invaluable.
What is Overhead %?
(Fixed Assets / (Fixed Assets - Accumulated Depreciation))
What is the Asset Newness Ratio?
This division typically has the highest Materials expenses as a % of Revenue.
What is install?
This ratio is good to know workers capacity, it helps to determine how many workers to hire.
What is Revenue per Employee?
A financial metric that represents the level of sales or revenue at which a business covers all its costs and expenses.
What is the Breakeven Point?
A client is dumbfounded when looking at the trends in the KPI Playbook section. This section shows current and prior YTD values to help bring clarity to the percentages.
What are the Financial Reports?
Net Income + Interest Expense + Corporate Taxes + Depreciation + Amortization
What is EBITDA?
This division typically has a higher need for more employees (headcount)
What is maintenance?
Higher current assets than current liabilities
What makes a favorable current ratio?
The gap between the actual revenue level and the breakeven point. In other words, the amount that revenue can drop before losses begin to be incurred.
What is the Margin of Safety?
Comparing this graph to the target of 2.5% of total income can be an indicator on whether or not to replace a vehicle or equipment.
What is Repairs & Maintenance vs Target?
(Cash & Cash Equivalents - Opening Cash & Cash Equivalents) / Revenue x 100
What is Net Cash Flow %?
We want 2x of fixed operating expenses for this target.
What is Cash on Hand?
This means that the client relies more on Equity than in Liabilities to finance their Assets.
What is a higher Equity to Assets than a Liabilities to Assets ratio?