Business Insights

Business Insights is a tool that enables you to analyze your business’ current financial situation. It calculates important business ratios to provide current information about profits, turnover, operating balances, etc.

Ratios show the relationship of one amount to another. They can be used to evaluate the health of a business by comparing amounts in the current period to previous months in the current year, as well as against the same month in the prior year.

The following ratios can be calculated using Business Insights.

Ratio	Description
Gross Profit Margin Ratio	Helps you assess whether your sales revenue sufficiently covers your operating and other expenses.
Operating Profit Ratio	Calculates the operating profit made per $100 of sales.
Net Profit to Sales Ratio	Calculates the net profit made per dollar of sales.
Accounts Receivable Days	Shows the average number of days it would take to collect your accounts receivable at the month’s average revenue per day.
Accounts Payable Days	Shows the average number of days it would take to collect your total accounts payable at the average rate of cost of goods sold per day.
Inventory Turnover Days	Shows the average number of days taken to turn over inventory.
Current Ratio	Shows your liquidity, and your ability to pay debts when they fall due.
Profitability Ratios	Shows a range of profit ratios in comparison to sales.

To use Business Insights

1	In the Accounts command centre, click Business Insights. The Business Insights window appears.

2	Select which fiscal years you want to compare. You can choose between this year and last year, or this year and next year.

3	Click Next to start your business review.

You can print reports from any analysis window by clicking Print.

4	Click Next to proceed through each report.

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