Key figures

Ratios are key indicators that show the relationship between significant financial statement items. They are used to understand a company’s financial strength, risk, and performance over time. Ratios make it possible to compare companies—both within the same industry and across markets—and serve as the basis for financial statement analysis, credit assessment, and strategic decisions.

What are key figures?

A key ratio illustrates the relationship between two or more financial measures. For example, it can describe the relationship between profit and revenue, debt and equity, or assets and earning power.
By converting figures from the financial statements into percentages or ratios, you gain a more accurate basis for assessing whether the company is thriving—and whether its financial performance is moving in the right direction.

Why are key figures important?

Key figures make it possible to:

• get a quick financial overview
• track developments from year to year
• benchmark against the industry and competitors
• identify the strengths and weaknesses of the economy
• assess risk and creditworthiness
• support investment and collaboration decisions

Since companies vary in size, cost structures, and business models, it is rarely sufficient to look at the raw financial figures alone. Key ratios make the figures comparable and meaningful.

Key Figures in Qatchr

When you look up a company in Qatchr, our credit platform, the platform automatically calculates a wide range of key metrics based on public financial data. This provides you with a solid basis for decision-making, because you can see at a glance:

• credit information
• risk assessment
• warnings
• key financial figures
• Key Figures and Trends Over Time

This means you don't have to calculate the numbers yourself—Qatchr does the work and displays the results right away.

Key Financial Ratios and Formulas

Here is an overview of the most important key figures and how they are calculated.

Return on Investment (ROI)

Shows how effectively the company generates a profit from its total invested capital.
Formula: Earnings before interest × 100 / Total assets

Solvency ratio

Shows what percentage of total assets is financed by equity.
Formula: Equity × 100 / Total assets

Liquidity Ratio

Measures whether the company can pay its short-term liabilities.
Formula: Current Assets × 100 / Short-Term Liabilities

Gross profit

Shows earnings after cost of goods sold.
Formula: Revenue – Cost of goods sold

Income Before Taxes

Shows profit before tax-related items affect the result.
Formula: Operating income – interest expense + interest income

Profit for the year

The company's actual profit or loss after taxes.
Formula: Profit before taxes – taxes

Equity

The owner's share of the company's financial foundation.
Formula: Assets – Liabilities

Balance

Shows assets, liabilities, and equity.
Formula: Assets = Equity + Liabilities

Return on Equity (ROE)

Shows how much return the owners receive on their invested capital.
Formula: Net income × 100 / Equity

Profit margin

Shows what percentage of revenue ends up as operating profit.
Formula: Earnings before interest × 100 / Revenue

Coverage ratio

Measures how much of revenue remains after variable costs.
Formula: Contribution Margin × 100 / Revenue

Inventory Turnover Rate

Shows how quickly the company receives payment from customers.
Formula: Net Revenue / Average Accounts Receivable

Inventory Turnover Rate

Shows how efficiently the company turns over its inventory.
Formula: Cost of Goods Sold / Average Inventory

Zero-Point Turnover

Indicates the revenue level at which the company neither makes a profit nor incurs a loss.
Formula: Fixed costs / Contribution margin as a percentage

How are key performance indicators used in practice?

Companies use key performance indicators to:

• monitor economic developments
• identify risks and trends
• analyze customers, suppliers, and business partners
• make decisions regarding pricing, strategy, and investment
• strengthen credit management and minimize losses

Key figures provide a fact-based foundation for assessing financial performance, enabling decisions to be made quickly and confidently.

Qatchr Makes Key Metrics Actionable

Qatchr gathers all relevant information in one place and presents key metrics alongside credit information and alerts. This provides you with a clear, data-driven basis for decision-making, both when evaluating new customers and monitoring existing ones through credit monitoring.