In order to construct a ProfitCents report, we look at a number of financial factors and metrics. We "score" these metrics by:
- Comparing a company's scores against industry statistics
- Evaluating trends, either positive or negative
In the Narrative and Analytical Procedures report, a company can receive a numerical score for each of the six sections of the report based upon the company's performance. This score ranges from 100, the top score, to 1, the lowest score. Scoring is determined by weighting each of the metrics we evaluate in an area and then assigning to each metric a score from 1 to 100. Even though the scoring facility of the program is fairly complex, it can only be a rough measure of overall performance in the section since you, as a user, may place more or less emphasis on one/some of the metrics than we do in scoring all metrics.
The scores for each categories are evaluated based on the following metrics:
Liquidity
Current Ratio
Current Ratio % Change
Quick Ratio
Quick Ratio % Change
Net Profit Margin % Change
Net Profit % Change
Sales % Change
Inventory Days
Accounts Receivable Days
Accounts Payable Days
Profitability
Net Profit Margin
Net Profit Margin % Change
Net Profit % Change
Gross Profit Margin % Change
Gross Profit % Change
Sales % Change
Sales
Sales % Change
Gross Fixed Assets % Change
Employee % Change
Borrowing
Borrowing Use (By Default: Net Profit % Change / Debt % Change)
Total Debt % Change
Current Ratio % Change
Net Profit Margin % Change
Net Profit % Change
Interest Coverage Ratio
Debt-to-Equity Ratio
Assets
Asset Use (By Default: Net Profit % Change / Asset % Change)
Gross Fixed Assets % Change
Current Ratio % Change
Net Profit Margin % Change
Net Profit % Change
Return on Equity
Return on Assets
Fixed Asset Turnover
Employees
Employee Use (By Default: Net Profit % Change / Employee % Change)
Net Income % Change
Employee % Change
Gross Fixed Assets % Change
Please call us at 833.4.ABRIGO or email us at profitcents.support@abrigo.com should you have any particular questions on how we calculate scores.