How to Write a Report of Financial Ratios

by Leigh Anthony, Demand Media
A financial ratios report can demonstrate the financial health of the business.


business report image by Christopher Hall from

Many people could fall asleep simply thinking about a written report about financial ratios. This is mainly because many people who are reading the report find it hard to follow it unless they have a strong background in finance and accounting. But there are ways to make the report more engaging for each person reading the financial ratios report. By structuring the report in a different manner other than just listing key ratios, readers can gain a better understanding of the company as well as its financial background.

Step 1

Identify the audience for the report. If the report is for internal use only, the report will read much differently than if it is going to be published to the Web as an annual report for the public. Before beginning on the financial ratios report, identify who will be reading the report. With an internal report, background information and extenuating circumstances can likely be left out while it will need to take center stage with a report for the public or for shareholders not involved in daily business operations.

Step 2

Provide company background information. In the first few pages of the report, there should be an executive summary that provides a brief but detailed summary of the entire financial ratios report. Someone should be able to read a one-page executive summary and have a general understanding of the business and its financial health. Next, explain the business including any major circumstances that have impacted the business since the publication of the last report. For instance, if 10 new competitors have entered the market, be sure to note that so readers will have an understanding of the changes in market share.

Step 3

Use full financial reports. In the appendices of the report, include the full financial statements. Although some readers will understand the ratios better, others prefer to be able to peruse the financial statements as a whole. Included in this section will be the balance sheet, income statement and cash flow statements. Some companies may also choose to include their tax returns as well though this is certainly not necessary.

Step 4

Explain the financial ratios. When listing key financial ratios for the business, explain what the ratio means if the report is going to be read by those who may not have a strong finance background. Instead of just showing that the current ratio is 1.2, explain that a current ratio of higher than 1 shows that the company has the ability to pay all of its current liabilities. This also gives a chance to explain any ratios that are not where they should be to indicate financial health and what the business plans to do to address these issues.


  • Always proof the report including double checking any calculations before publishing the report.

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