AAII’s Computerized Investing Ratio Analysis Spreadsheet allows users to calculate a common-size balance sheet, common-size income statement, and useful asset management, profitability, liquidity, debt management and market ratios. User inputs are marked in blue and the figures can be found on company financial statements.
The Excel spreadsheet is very simple and only takes minutes to complete. The worksheet has formulas written in that will calculate outputs based on the figures you enter. The common-size balance sheet and income statement breaks down each line item and shows it as a percent of total assets, total liabilities and stockholder’s equity, or total operating revenue. The main advantage of common-size financial statements is the ease with which you are able to recognize trends, especially in margins.
Ratios are presented at the bottom of the worksheet. Turnover, margins, liquidity ratios and market ratios such as price-earnings, price-book and payout ratios are all offered. Most of these ratios are provided by top comprehensive financial websites but using this spreadsheet, you can calculate them for yourself using figures taken directly from the company financial statements.
Ratio Analysis Spreadsheet
System Requirements: Microsoft Excel 5.0+/Lotus 1-2-3