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All input uses interactive savable PDF's that can be imported and reviewed prior to report generation that minimizes handling cost. The time required to generate and download reports is kept to only a few seconds.

Download the form, email to applicants or post on your site for easy access as needed (forms can be customized to meet client needs). Imported data can be edited prior to generating reports.

Comparative Analysis

Our comparative analysis report is a quick and efficient method to ascertain strengths and weaknesses as entities grow, develop or otherwise change. Changes viewed over several periods provide insights not readily apparent with other statements. Options exist to include from two to five periods. The business analysis calculator produces Income Statement, Balance Sheet, Risk Assessment, Equity Reconciliation, Cash Flow Statement, Source & Application of Funds with Changes in Working Capital, and Key Performance Indicators.

Note: Users of premium reports (containing financial statements) from major providers will be able to tie base inputs back to agency reports.

Limited input required for each period. Spend less than 60 seconds to generate reports containing up to five periods of data.

Risk Assessment

Risk analysis scores are computed using Altman's public/private Z score model:

Note: Altman has several models that pertain only to public companies. This Public/Private Model is applicable to both public and private companies (manufacturers and nonmanufacturers) but not to financial sector firms (banks, brokers, insurance).

Formula: Z = 6.56*x1 + 3.26*x2 + 6.72*x3 + 1.05*x4


  • x1 = working capital/total assets
  • x2 = retained earnings/total assets
  • x3 = earnings before interest and taxes/total assets
  • x4 = book value of equity/total liabilities

Higher scores indicate a greater degree of solvency than lower scores.

Lower scores indicate higher probabilities of default.

Strictly speaking a z-score model determines whether the firm has a financial profile more similar to the failed group of firms or the solvent set from which the model was developed.

The z–score model is made up of a number of fairly conventional financial ratios measuring important and distinct facets of a firm’s financial profile, synthesized into a single index (score).

The model is multivariate (as are a firm’s set of accounts) and is doing little more than reflecting and condensing the information they provide in a succinct and clear manner. Its power comes from considering the different aspects of economic information in a firm’s set of accounts simultaneously, rather than one at a time, as with conventional ratio analysis. The technique quantifies the degrees of corporate risk in an independent, unbiased and objective manner.

Practical reasons why the multivariate approach works:
  • The choice of financial ratios used by the methodology are less susceptable to manipulation by virtue of their construction.
  • The multivariate nature of the model capitalizes on double entry accounting so that manipulation in one area of the accounts has a counterbalancing impact elsewhere in the model.
  • Generally the empirical nature of its development which makes potential insolvency difficult to hide.
Classification Tables:
Rating Description Score
AAA sound 4.90
AA sound 4.05
A sound 3.40
BBB sound 2.60
BB neutral 1.70
B danger 0.90
CCC danger (0.08)
Altman Z" Discrimination Zones
Sound >= 2.60
Neutral >=1.10<2.60
Danger < 1.10

Ratio analysis yields valid comparative results regardless of the currency utilized. The model examines fundamental financial attributes that are then integrated into a composite score. Though expressed somewhat differently for computational purposes, the components and standards are similar to those used by traditional lenders. It is an easily understood approach that provides comprehensive financial details not available with the standard agency reports. When significant amounts are involved we recommend supplementing the analysis with trade reports from firms like the Credit Management Association (CMA) or D&B small business solutions and others for their pertinent data and services.

Users can internally adjust their qualifying cutoff scores as their risk tolerance and economic conditions change.

Any ratings assignment should also include careful analysis of the income statement, balance sheet, changes in financial position and key metrics along with consideration of trends, economic conditions and other available data.

Income Statement and Balance Sheet

Statements are presented in a condensed format using a combination of specific line items and major groupings to obtain an overall look at major account classifications with related percentages shown. The single page recap allows users to quickly ascertain key balances, significant changes and trends by period.

Cash (Funds) Flow - Source and Application of Funds

Cash (Funds) flow statements are first grouped by activity and then again as a Source and Applications of Funds with Changes in Working Capital. These reflect the change in account balances including non cash transactions. A major benefit of this approach is that it accounts for all recorded balance sheet change.

Metrics / KPI's

Metrics / Key Performance Indicators (KPI's) - Additional analysis allows the user to review balances, percentages, amount of change, ratios and other standard measurements taken from the balance sheet and income statement. View the sample report for specific KPI's as forty line items are calculated per period. The same comparative format enables changes, trends and account relationships to be viewed for consistency and reasonableness.