Financial Ratio Analysis

Data & APIs

Compute and report 25+ financial ratios (profitability, liquidity, leverage, efficiency, growth) from QBO data. Produces a 9-tab Excel workbook with traffic-light scoring, DuPont decomposition, Altman Z-Score, 6-month trend charts, trend-reversal detection, and CDC logging. Integrates with the Month-End Close pipeline.

Install

openclaw skills install financial-ratios

Financial Ratio Analysis — SKILL.md

When to Use This Skill

Use when a user asks for:

Financial ratio analysis for a QBO-connected client
Profitability, liquidity, leverage, or efficiency metrics
DuPont decomposition or Altman Z-Score analysis
Month-over-month, QoQ, or YoY ratio comparison
Ratio benchmarking against industry averages
Trend analysis across 6 months of ratios
Trend reversal detection for any financial ratio
CDC (change data capture) on ratio movements

NOT for:

Bank reconciliation → use bank-reconciliation
P&L variance analysis (line-item drill-down) → use pl-deep-analysis
Cash flow forecasting → use cash-flow-forecast
AR collections aging → use ar-collections
Budget vs. actual → use budget-vs-actual

Quick Invocation

# Standard monthly ratio report
python3 scripts/pipelines/financial-ratios.py --slug sb-paulson --month 2026-03

# Custom output directory
python3 scripts/pipelines/financial-ratios.py --slug <client-slug> --month 2026-03 --out ~/Desktop/reports

# QBO sandbox
python3 scripts/pipelines/financial-ratios.py --slug sb-paulson --month 2026-03 --sandbox

Unknown slugs use default thresholds and disable inventory/valuation ratios unless SOP file found.

What It Produces

Excel workbook saved to ~/Desktop (or --out path): FinancialRatios_{slug}_{YYYY_MM}.xlsx

Tab	Contents
Ratio Summary	All ratios with traffic lights, benchmarks, DuPont & Altman summary
Profitability	Gross/Operating/Net margins, ROA, ROE, EBITDA margin + 6-mo trend
Liquidity	Current/Quick/Cash ratios, Working capital + 6-mo trend
Leverage	D/E, D/A, Interest coverage, Equity multiplier + 6-mo trend
Efficiency	Asset/Inventory/Receivable/Payable turnover, DSO, DPO, CCC + 6-mo trend
Growth	Revenue (MoM/QoQ/YoY), Expense, Net income growth + 6-mo trend
DuPont Analysis	3-factor + 5-factor ROE decomposition, 6-month component trend
Trends	All ratios × 6 months with direction arrows + trend reversal flags
CDC Log	Ratio changes vs. prior run with trend reversal detection

Ratio Categories

Profitability

Ratio	Formula
Gross Margin %	Gross Profit / Revenue × 100
Operating Margin %	EBIT / Revenue × 100
Net Margin %	Net Income / Revenue × 100
EBITDA Margin %	EBITDA / Revenue × 100
ROA	Net Income / Total Assets × 100
ROE	Net Income / Total Equity × 100

Liquidity

Ratio	Formula
Current Ratio	Current Assets / Current Liabilities
Quick Ratio	(Current Assets − Inventory) / Current Liabilities
Cash Ratio	Cash / Current Liabilities
Working Capital	Current Assets − Current Liabilities
Working Capital Ratio	Working Capital / Total Assets × 100

Leverage

Ratio	Formula
Debt-to-Equity	Total Liabilities / Total Equity
Debt-to-Assets	Total Liabilities / Total Assets
Interest Coverage	EBIT / Interest Expense
Equity Multiplier	Total Assets / Total Equity

Efficiency

Ratio	Formula
Asset Turnover	Revenue / Total Assets
Inventory Turnover	COGS / Inventory (annualized)
Receivable Turnover	Revenue / Accounts Receivable
DSO (Days Sales Outstanding)	AR / (Revenue / Days)
Payable Turnover	COGS / Accounts Payable
DPO (Days Payable Outstanding)	AP / (COGS / Days)
Cash Conversion Cycle	DSO + DIO − DPO

Growth

Ratio	Formula
Revenue Growth MoM	(Current − Prior) /
Revenue Growth QoQ	(Current − 3mo ago) /
Revenue Growth YoY	(Current − 12mo ago) /
Expense Growth	(Current Opex − Prior Opex) /
Net Income Growth	(Current NI − Prior NI) /

Valuation (SOP-gated)

Ratio	Formula
Revenue Multiple	Enterprise Value / (Revenue × 12)
EBITDA Multiple	Enterprise Value / (EBITDA × 12)

DuPont Analysis

Three-Factor Model

ROE = Net Margin × Asset Turnover × Equity Multiplier

Five-Factor Model

ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Equity Multiplier

Both models computed; trend shown for each component across 6 months.

Altman Z-Score

Bankruptcy risk indicator. Model selected automatically by entity_type in SOP config:

Model	Used For	Zones
Z' (Revised)	Private/Services (default)	Safe >2.9 \| Grey 1.23-2.9 \| Distress <1.23
Z (Original)	Manufacturing	Safe >2.99 \| Grey 1.81-2.99 \| Distress <1.81

Formula (Z' model): Z' = 0.717×(WC/TA) + 0.847×(RE/TA) + 3.107×(EBIT/TA) + 0.420×(BVE/TL) + 0.998×(Revenue/TA)

Traffic Light Scoring

Each ratio scores GREEN / YELLOW / RED based on thresholds configured per client SOP.

GREEN: Within healthy range
YELLOW: Watch — approaching threshold
RED: Action required

Thresholds are configured in CLIENT_CONFIGS within the script. Override by editing the dict or adding a client SOP file.

Trend Reversal Detection

The pipeline detects when a ratio reverses direction over the 6-month window:

Compares direction of first half vs. second half of history
Flags ⚡ Trend Reversal — Now Improving or ⚠ Trend Reversal — Now Declining
Flagged prominently in Trends tab and CDC Log

Client SOP Integration

Place a sop.md file at clients/{slug}/sop.md. The pipeline reads it to detect:

SOP Signal	Effect
"POS collection" / "no accounts receivable"	Disables AR ratios (DSO, receivable turnover)
"no inventory" / "service-based"	Disables inventory ratios
"manufacturing" / "distribution"	Switches to original Altman Z model
`enterprise value: $X`	Enables valuation ratios (revenue/EBITDA multiples)
`benchmark: {key} {value}`	Overrides specific benchmark values

Client Configuration

Add clients to CLIENT_CONFIGS in the script with:

ratios_enabled list (which ratios to compute/display)
thresholds dict per ratio: {"green": (min, max), "yellow": (min, max)}
benchmarks dict per ratio: Decimal values
entity_type: "services" or "manufacturing" (for Altman Z model)

QBO Data Pulled

Report	Purpose
P&L (current month)	Revenue, COGS, OpEx, Net Income, Interest, D&A
Balance Sheet (current month-end)	Assets, Liabilities, Equity, Cash, AR, Inventory, AP
Cash Flow (current month)	Operating/Investing/Financing cash flows
P&L (prior month)	MoM growth ratios
P&L (3 months ago)	QoQ growth ratio
P&L (12 months ago)	YoY growth ratio
All of the above × 6 months	Historical trend analysis

Total QBO calls: ~17 per run (6-month history + current + prior + QoQ + YoY)

CDC Cache

Cache stored at: .cache/financial-ratios/{slug}.json

Tracks:

All ratio values from prior run
Detects per-ratio changes (delta + % change)
Flags trend reversals when 6-month history available
Compares run-over-run for drift monitoring

Technical Notes

All financial math: Python Decimal (no floating-point errors)
Division-by-zero: returns ZERO, never crashes
Missing QBO lines: ZERO (safe fallback), does not inflate ratios
Inventory turnover: annualized (× 12 for monthly periods)
Interest coverage = 999.99 when no interest expense (signals no debt burden)
Altman Z-Score uses book value of equity (not market cap) for private company model
EBITDA = EBIT + D&A; EBIT = Net Income + Interest + Taxes
Operating margin uses EBIT as proxy for operating income if QBO doesn't separate it

Files

File	Description
`scripts/pipelines/financial-ratios.py`	Main pipeline script
`skills/financial-ratios/SKILL.md`	This file
`.cache/financial-ratios/{slug}.json`	CDC cache per client