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Summary

Use the ratio builder to create custom financial ratios for use in MindBridge analyses. Learn how to build, configure, and manage ratios below:

• About fields
• About account modifiers
• Add fields
• Define or change an operator
• Bracket groups

Note: While library ratios are limited to App Admins, other roles can create and manage ratios within the engagement settings, as well as create new ratios via the Ratios dashboard. Engagement-and analysis-level ratios can also be added to the library as needed so they can then be used in future engagements.

About fields

When building a ratio, fields contain a term and an operator.

• Term: A quantifiable element in your ratio.
• Operator: The mathematical expression to be performed on the element (the only field that does not contain an operator is the first field of a row).

Note: When building ratios, debits and credits retain their positive and negative signs. If you are converting a ratio that has a credit balance in the numerator or denominator, you will need to add [ \ -1] to the credit balance in order for the ratio to be presented as a positive balance. For example, a current ratio formula will be: 12002 Current assets, Ending Balance divided by _22002 Current liabilities, Ending Balance \ -1_.

Example

In the image below:

1. This field contains a term.
2. This field contains a term and an operator.

The first term is being multiplied by 365, then divided by a third term: Days in the YTD period.

About account modifiers

When you add an account to a ratio, you can select a modifier to change the values of the account. The following modifiers are available:

• Average daily balance: The average daily ending balance of the account throughout the period. This is calculated as (starting balance for the period + ending balance for the period) / 2.
• \* Ending balance: The calculated balance of the account at the end of the period (i.e., provided opening balances + delta)
• Credit amount: The sum of all credit entries to the account within the period.
• Debit amount: The sum of all debit entries to the account within the period.
• Activity: The net activity (debits minus credits) within the period.
• Opening balance: The balance of the account at the start of the period.
  • If an opening balance entry is missing, the relevant account will reflect a value of zero ("0") for the period.
  • If an opening balance file is not provided, all account balances will be set to zero ("0"). This is reset at the beginning of each period.
• Cumulative YTD (year-to-date) activity: The sum of all activity in the account (net debits minus credits) from the start of the analysis period to the end of the reporting period.

Select Undo last action to go back a step, or select Cancel to discard your ratio and close the ratio builder.

* Note: The ending balance is the default account selection when building ratios.

Add fields

After any of the following actions, you can select Undo last action to go back a step, or select Cancel to discard your ratio and close the ratio builder.

Add a new row

1. Select Add in the respective row.
2. Choose the term you want to add to the row.

Add a new field between existing fields

1. Open the more actions menu ( ) beside the existing field to open a menu.
2. Select Add new field left or Add new field right depending on where you want the new field to be created.

Replace and delete fields

Some complex ratios require a multitude of fields in each row. Replacing or deleting fields allows you to quickly and easily make adjustments.

1. Open the more actions menu ( ) beside the existing field to open a menu.
2. Select Replace current field or Delete current field.
3. You can also delete the entire row by selecting the delete icon ( ) to the right of the row.

Define or change an operator

1. Select the operator symbol to open a menu.
2. Select the operator you want to use in the ratio:
   • \* (multiplication)
   • / (division)
   • + (addition)
   • - (subtraction)

Select Undo last action to go back a step, or select Cancel to discard your ratio and close the ratio builder.

Bracket groups

To add a bracket group to your row:

1. Select Add to open the menu.
2. Select Bracket Group.
3. Adjust the term and operator, and/or add more terms within the bracket group.

Select Undo last action to go back a step, or select Cancel to discard your ratio and close the ratio builder.