Ratio Analysis & Performance Reporting: Turning Numbers Into Insight

At LM Financial Solutions and Bookkeeping, we go beyond just “doing the books.” We help you understand what the numbers really mean.

Through ratio analysis and performance reporting, we provide powerful insights into your business’s financial health—giving you the clarity and confidence to make informed, strategic decisions.

What is Ratio Analysis?

Ratio analysis involves evaluating key financial ratios from your income statement, balance sheet, and cash flow statement to assess your business's performance.

These ratios help answer critical questions like:

  • Are we operating efficiently?

  • How does our profitability compare to industry benchmarks?

  • Can we comfortably cover our debts?

  • Are we getting a good return on our investments?

We break down your financials into actionable insights using common ratios like:

  • Profitability ratios (e.g. gross margin, net profit margin)

  • Liquidity ratios (e.g. current ratio, quick ratio)

  • Efficiency ratios (e.g. inventory turnover, receivables days)

  • Leverage ratios (e.g. debt-to-equity, interest coverage)

What is Performance Reporting? 

Performance reporting tracks key metrics over time to measure how your business is performing against budgets, forecasts, or industry standards.

At LM Financial Solutions, we tailor your performance reports to highlight what matters most to your business—whether that’s profitability, cash flow, cost control, or growth.

We can provide monthly, quarterly, or ad hoc reporting to help you stay on track and make timely decisions.

Why are they vital for your business?

See Beyond the Numbers
Our reports don’t just show you the figures—they explain what they mean and how to improve them.

Track Trends & Spot Red Flags
Consistent performance reporting helps you identify patterns early—both opportunities and warning signs—so you can act before it’s too late.

Make Confident Business Decisions
With reliable ratio analysis, you can assess financial health at a glance and make informed decisions about pricing, staffing, expansion, and investment.

Improve Profitability
By identifying inefficiencies or underperforming areas, we help you unlock hidden profits and reduce costs.

Support External Reporting
Need to report to investors, lenders, or boards? We deliver clear, professional reports that increase your credibility and transparency.

Benchmark Your Business
We compare your key metrics to industry averages, helping you see where you stand—and where you can improve.

How LM Financial Solutions Supports You

With our fractional CFO services, we provide more than just reports—we offer ongoing analysis, guidance, and strategic support to help you grow and thrive. Our services include:

  • Monthly or Quarterly Performance Dashboards

  • Detailed Financial Ratio Analysis

  • Variance Analysis (Actuals vs Budget/Forecast)

  • Custom KPI Tracking based on your business model

  • Industry Benchmarking

  • Commentary and recommendations from a fractional CFO perspective

  • Integration with bookkeeping, GST, and payroll reporting for a complete picture

Whether you're aiming to increase profitability, secure financing, or simply gain a better handle on how your business is performing, our ratio analysis and performance reporting services give you the insight and clarity you need.

Let LM Financial Solutions and Bookkeeping help you understand your numbers—so you can lead with confidence.

Contact us today to get started or book a discovery call.