Financial statement analyzer

Questions people actually ask

How is this different from other ratio calculators?

The others are single-formula pages: a Z-score calculator here, a DuPont page there, a ratio table somewhere else — each asking you to re-type the same statements. Here the statements are entered once and read through every lens at once: four ratio families, the DuPont decomposition, and the Z-score, with prior-year trend arrows on every ratio. Analyses save in your browser and can sync across devices.

Where do the formulas come from?

Nothing here is proprietary — these are the standard definitions from any corporate finance text, and every ratio shows its formula next to its value. The Z-score is Edward Altman’s 1968 discriminant model (Journal of Finance 23(4)) for listed companies, and his 1983 re-estimated Z′ for private firms, which substitutes book equity for market value. The DuPont decomposition is the classic three-step and five-step breakdown taught in the CFA Level 1 curriculum.

What does the Z-score actually tell me?

It is a screening statistic, not a verdict: a weighted blend of five ratios that, in Altman’s samples, separated companies that later went bankrupt from those that did not. Above the safe threshold, distress within two years was rare; below the distress threshold, common. The grey zone in between exists because the model itself declines to call those cases — treat a grey or distress reading as a reason to look deeper, never as a prediction.

Why is net income derived instead of entered?

Because entering it directly lets it contradict its own components — a net income that does not equal pre-tax profit minus tax poisons every ratio built on it. This tool derives the whole chain (gross profit → EBIT → pre-tax → net income) and shows the working, the same way equity is derived from the accounting identity assets − liabilities. If a derived figure looks wrong, one of the inputs is — and that is worth knowing.

Are the benchmark hints reliable?

They are rules of thumb, clearly labelled as such, and every one of them varies by industry — a grocer and a shipyard have wildly different healthy inventory turnovers. The honest use of this tool is comparing a company against its own prior year (the trend arrows) and against direct competitors you analyze in separate saved tabs, not against a universal number.

Is my company’s data uploaded anywhere?

No. The analyzer runs entirely in your browser and uploads nothing — statement figures for a private company are competitively sensitive, and the default respects that. If you sign in with Google, and only then, analyses are backed up to your private account row so they sync across devices; deletable any time from My profile.