The Basic Ratio Analysis Power BI Report is designed to provide financial insights using key financial ratios over the period from 2010 to 2019. The report visualizes trends related to profitability, liquidity, equity, debt, revenue, and balance sheet items to help stakeholders assess financial health and performance.

Purpose & Objectives

The purpose of this Power BI report is to:

  • Analyze financial performance using key financial ratios.
  • Identify trends in profitability, liquidity, and capital structure.
  • Provide a visual representation of financial trends to support decision-making.
  • Compare financial metrics across different years for strategic insights.

Key Report Components & Metrics

The report consists of multiple visualizations, including line charts, bar graphs, and trend analysis charts. Below are the key metrics covered:

3.1. Profitability Ratios

  • Gross Profit % (e.g., 33.7% in a specific year)
  • Operating Profit % (e.g., 14.7%)
  • Net Profit % (e.g., 17.7%)
  • Trend analysis of these ratios from 2010 to 2019

3.2. Liquidity Ratios

  • Current Ratio (e.g., 1.94 in a given year)
  • Cash Ratio (e.g., 0.88 in a given year)
  • Year-wise comparison of liquidity ratios

3.3. Shareholder Equity & Debt Analysis

  • Shareholder’s Equity (e.g., 0.10M – 0.20M over different years)
  • Debt to Equity Ratio (e.g., ranging from 2.5 to 6.2 across years)
  • Debt Ratio (e.g., 0.81 in a given year)

3.4. Efficiency Ratios

  • Asset Turnover Ratio (e.g., 1.05)
  • Inventory Turnover Ratio (e.g., 61.67)

3.5. Balance Sheet Trends

  • Current Assets & Non-Current Assets trend
  • Current Liabilities & Non-Current Liabilities trend
  • Year-wise percentage distribution of balance sheet components

3.6. Revenue Trends

  • Annual revenue from 2010 to 2019
  • Visualization of revenue growth (e.g., from 0.3M in 2010 to 1.4M in 2019)

Report Functionalities

  • Interactive Filters: Users should be able to filter data by year and financial ratio.
  • Trend Analysis: Historical comparison of financial ratios.
  • Drill-down Functionality: Allow users to view details for specific years.
  • Comparison Charts: Side-by-side comparison of different ratios.
  • Data Export: Option to export key insights into Excel or PDF.

Data Sources

  • Financial statements for the years 2010-2019.
  • Data sources should be structured for integration with Power BI.

Assumptions & Constraints

  • The data must be accurate and pre-validated before importing into Power BI.
  • The report should be optimized for performance with large datasets.
  • The dashboard should be accessible on both desktop and mobile devices.
  • User access control may be required based on role-based viewing permissions.

Stakeholders

  • Finance Team: For financial performance assessment.
  • Executives & Management: To make strategic decisions based on trends.
  • Investors & Analysts: To evaluate financial stability and profitability.

Success Metrics

  • Accuracy: Data should match financial statements.
  • User Engagement: Users should interact seamlessly with filters and charts.
  • Performance: Report should load within acceptable time limits.
  • Insights Quality: The report should help stakeholders make informed decisions.

Future Enhancements

  • Addition of forecasting models for financial projections.
  • Inclusion of industry benchmark comparisons.
  • AI-powered insights and anomaly detection.
Basic Ratio AnalysisDownload

Project Completion Method

10.1 SQL Queries for Data Extraction

The raw data will be extracted from a relational database using SQL queries. Below are some example queries:

Extracting Financial Data:

SELECT Year, Gross_Profit, Operating_Profit, Net_Profit, Revenue, Current_Assets, Non_Current_Assets, Current_Liabilities, Non_Current_Liabilities, Shareholder_Equity, Debt_Equity_Ratio
FROM Financial_Statements
WHERE Year BETWEEN 2010 AND 2019;

Extracting Liquidity Ratios:

SELECT Year, Current_Ratio, Cash_Ratio
FROM Liquidity_Metrics
WHERE Year BETWEEN 2010 AND 2019;

10.2 Power Query for Data Transformation

  • Data Cleaning: Removing null values and correcting data types.
  • Data Merging: Merging financial statements with liquidity ratios using Year as the key.
  • Column Transformations: Creating new calculated columns like Debt Ratio and Return on Equity (ROE).
  • Pivot & Unpivot Operations: Restructuring data for visualization purposes.

10.3 Power BI Data Model & DAX Calculations

  • Creating Relationships between tables for seamless data integration.
  • Writing DAX Measures for computed values:

Gross Profit Percentage:

GrossProfit% = DIVIDE(SUM(Financial_Statements[Gross_Profit]), SUM(Financial_Statements[Revenue]))

Debt to Equity Ratio:

DebtToEquity = DIVIDE(SUM(Financial_Statements[Total_Debt]), SUM(Financial_Statements[Shareholder_Equity]))

Net Profit Margin:

NetProfitMargin = DIVIDE(SUM(Financial_Statements[Net_Profit]), SUM(Financial_Statements[Revenue]))

10.4 Power BI Visualization & Dashboard Development

  • Creating Line Charts for trend analysis of ratios over time.
  • Using Bar Graphs for year-over-year comparisons.
  • Adding Slicers & Filters for dynamic interaction.
  • Implementing KPI Indicators to highlight financial performance trends.

Approval & Review

  • This document should be reviewed and approved by the finance and IT teams before implementation.
  • Any modifications should be logged and version-controlled.

Basic Ratio Analysis Power BI Report in CSV format. You can download it here:

Basic_Ratio_Analysis_Sample_DataDownload

Developed by Muhammad Zahid

Muhammad Zahid