After months of hard work, the fifth and final overhauled Handle report is now live!
This finance report has been designed to give you an overview of how healthy your business’s financials are in a clear and simple way.
Check out this sneak peak…
In your finance report Handle gives you three cards and scores based on your performance:
- Cash flow
Now, let’s get into the detail.
In this card you are given metrics to help you gauge how profitable your business is. The more profitable your business the more sustainable it should be over the long term.
Within your profitability card you are given two metrics, your net profit margin and your retained earnings to assets ratio. Your net profit margin measures the health of your profit margins, and it goes with out saying, the more profit the better.
The retained earnings to assets ratio is your amount of retained profits relative to your assets. The higher your ratio the more it indicates that you are able to manage existing assets and acquire new assets.
Your cash flow card measures how well you can meet financial obligations and continue investing in your business.
Within this card you are given metrics on:
- Your quick ratio
- Your current ratio
- Your free cash flow
- Cash conversion rate
Your quick ratio is a basic measure of your business liquidity. Lenders often look into a business's liquidity to see the percentage of a business's debts that could be paid off by quickly converting assets into cash. Having a higher quick ratio will improve your ability to get finance at great rates.
Your current ratio is a measure used by lenders and investors to check your business's ability to pay financial commitments.
If you want to expand your business (and who doesn't?), you want to make sure that you have a good amount of free cash flow. This metric is a measure of the amount of cash available after spending what is required to maintain your existing assets.
Your cash conversion rate measures how fast your business converts cash into stock and then back into cash through sales. This metric gives suppliers and investors confidence in the liquidity and management of your business.
Your security card gives you an overview of your financial security rating. This tells you how much confidence possible suppliers, lenders and investors will have in your business's ability to cover long term liabilities.
Within the security card you are given metrics on:
- Your long term liabilities
- Your gearing ratio
Your long term liabilities metric looks at how healthy your long term debt coverage is. The higher the ratio the better positioned you are to meet long term financial obligations, which is viewed positively by suppliers, investors and lenders.
Your gearing ratio is the capital structure of your business. Now, for those of you who aren't financial experts you're probably thinking 'what on earth is capital structure?'. Your capital structure is the proportion of finance that is provided by debt, relative to the finance provided by shareholders.
So basically, the better your gearing the more confidence investors and suppliers have in the stability of your business.
Track your accounts overtime
At the bottom of your report you can also see a timeline of your account recency. This shows you how up to date your accounts are on Companies House over the past 5 years. Enabling you to view your business through the eyes of third party providers, as they use this information to make an informed decision about your business before they do business with you.
Just like the previous four reports the Handle Finance report builds your business personalised action plans depending on your financial strengths and weaknesses. You'll get access to resources and tools to help you understand and work on improving your business finances.
And there you have it, the new and improved Handle Finance report.
If you have any questions regarding the new Handle finance report, you can get in touch with us at [email protected].