A business needs to have spare capacity for activities such as production and staff. The capacity cushion calculation indicates the level of spare capacity a business has relative to its total capacity.
Last modified October 14th, 2022
Accounting Ratios Basics
Cash Flow Ratios Calculator
Cash Flow Ratio Analysis
Vertical Analysis Calculator
A vertical analysis shows each line of financial statements as a percentage of a base line item so that comparisons can be made. This free Excel calculator produces a vertical analysis of an income statement in relation to total revenue, and of a balance sheet in relation to total assets.
Last modified July 16th, 2019
Cash Flow Statement Analysis
It is quite feasible for a business to show a healthy balance sheet and be profitable, but if it runs out of cash it will fail.
The balance sheet only shows the position at a particular point in time, and the income statement deals in profit not cash. The purpose of the business cash flow analysis is to correct this situation.
Last modified January 4th, 2023
Income Statement Analysis
Income statement analysis can be carried out using ratios based on information contained within the income statement. Understanding how to read a income statement and regular monitoring of the income statement ratios provides owners and management with a useful tool to help them manage their business more effectively.
By analyzing the income statement a business is able to see how it is performing relative to earlier accounting periods, and how its performance compares to other businesses in the industry.
Last modified June 7th, 2022
Balance Sheet Analysis
Balance sheet ratio analysis can be carried out using ratios based on information contained within the balance sheet. Knowing how to analyze a balance sheet gives the reader a better understanding of a business, allows changes over time to be monitored, and allows comparisons of different businesses to be made.
Last modified December 20th, 2019
Common Size Income Statement Calculator
The common size income statement shows each line of a standard income statement as a percentage of the total revenue (sales) of a business.
This free Excel calculator produces a common size income statement from standard information taken from the income statement of a business.
Last modified July 16th, 2019
Common Size Income Statement
A common size income statement is one that has an additional column showing each monetary amount as a percentage of the total revenue of the business. The common size income statement is not required by Accounting Standards, and is used more as a management tool rather than a formal reporting document.
Last modified June 9th, 2022
Common Size Balance Sheet Calculator
Common Size Balance Sheet
A common size balance sheet is one that has an additional column showing each monetary amount as a percentage of the total assets of the business. The common size balance sheet is not required by Accounting Standards, and is used more as a management tool rather than a formal reporting document.
Last modified October 24th, 2022
