Business Analysis Tools

Ratio	What does it do?	How to calculate
Current	Measures the financial health of your business. A Healthy Business results in 2+	Divide your Total Assets by your Total Liabilities
Quick	Measures your business liquidity. The optimal result is 1+	​Divide your Current Assets (less stock) by your Current Liabilities
Stock Turnover	Many Practices are now selling products and often cash can be tied up in unsold stock.	​Cost of goods sold divided by the average value of stock
​Average Fees Earned by Practitioners	Individual Practitioners can compare their fees earned with average fees earned	​Total Fees earned in a given period divided by the number of Fee Earning Practitioners
Average Fees Earned by all Personnel	Staff members can see a result from their efforts and share in the rewards	​Total Fees earned in a given period divided by the number of Personnel
Average Hourly Income	​Calculates the average hourly income	​Total Fees earned in a given period divided by the total Working Hours of Fee Earning Practitioners
Average Hourly Expense	​Calculates the average hourly expense	​Total Expenses in a given period divided by the Total Working Hours
Average Daily Expense	Calculates the average daily expense for running your business	​Total Expenses in a given period divided by the Total Working Days
Break Even	Take the Average Hourly Income and see how many hours you need to work to cover the expenses for the day. Once the expenses are covered, the income to end of day is then profit. Calculate this for the week instead of the Day and you might be more relaxed about having a day off.