Processing financial ratios

Axiom allows you to automatically calculate and save your organization’s key ratios and financial statistics for management reports and dashboards. This feature allows you to replace standalone report utilities with a centralized system for defining and calculating all key ratios and financial statistics. The results are then saved to the database, where they can be easily retrieved for consistent reporting across the organization.

Included with the ratio utilities is a group of pre-built ratios. These are common industry ratios and may be adequate for the organization. They also provide examples of how ratio rules are configured, which your organization can then copy and customize to meet a specific set of requirements.

Processing financial ratios

Once ratios are configured using the Ratio Rule Manager utility, you can process them. You can then use the Generate Ratios Engine utility to review and resolve a ratio’s calculation, as needed.

To process financial ratios:

  1. On the Process Data tab of the Financial Reporting page, click the Process Financial Ratios sub-tab.

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  2. In the Process Financial Ratios section, complete the following:

    1. From the Reporting Table drop-down list, select the reporting table to process.

    2. From the Financial Statistic Department Column drop-down list, select the department financial statistic to process. All statistics calculated by the ratio engine are generated and saved to this column. Select a column that is the most detailed needed to support ratio reporting. If in doubt, use DEPT.DEPT.

    3. From the Ratio Department Column drop-down list, select an optional grouping column for calculating and saving ratios.

      TIP: The system automatically calculates ratio records for each company (DEPT.COMPANY). You can generate ratios for any column in the Department dimension, including DEPT, so that you can generate ratios for all of the departments—whether meaningful or not. If more than one optional column is needed, you can process again for that column and select the Limit to Processing Ratios Only check box.

    4. Optionally, to process ratios without regenerating the underlying financial statistics, select the Only Process Ratios check box.

  3. Click Process.

  4. Click OK at the prompt.

Managing financial ratios

Use the Ratio Rule Manager utility to add, edit, and review ratios and calculate supporting financial statistics.

To manage ratio rules: 

  1. On the Process Data tab of the Financial Reporting page, click the Process Financial Ratios sub-tab.

  2. In the Manage Ratio Rules section, click Run to launch the Desktop Client.

  3. Click Open to open the Ratio Rule Manager utility.

  4. In the Ratio Rule Manager utility, add or edit ratio rules as described in Managing ratios for financial reporting.

Reviewing ratio calculations

To review ratio calculations:

  1. On the Process Data tab of the Financial Reporting page, click the Process Financial Ratios sub-tab.
  2. Under Review Ratio Calculations, click Run to launch the Desktop Client.

  3. Click Open to launch the Generate Ratio Engine utility.

  4. In the Generate Ratio Engine utility, add or edit ratio calculations as described in Reviewing financial statistics and ratios.