CRC Information Systems Releases Financial Ratios Module
Tuesday, July 02, 2002
SCOTTSDALE, AZ (July 1, 2002)–CRC Information Systems, Inc. (CRC) is pleased to announce the release of the Financial Ratios module. This new module gives CRC customers an additional tool to determine the overall financial condition of their company. It puts the information from a financial statement into perspective, making it easier for management to spot financial patterns in advance and make more timely and well informed decisions. The module consists of the following eleven ratios: Current Ratio: Liquidity ratio that measures the ability to meet current responsibilities Quick Ratio: Similar to the current ratio, except inventories are subtracted out of current assets to produce a more accurate measure of liquidity Inventory Turnover Ratio: Computes number of times inventory turns over in the course of a year Receivables Turnover Ratio: Used to access effectiveness of payment terms Average Collection Period: Determines the timeliness that customers pay their bills Payables Turnover Ratio: Analyzes time between receiving a bill and making payment Inventory to Net Working Capital: Looks at amount of resources tied up in inventories Debt to Equity Ratio: Measures how a company is leveraged Return on Assets Ratio: Reports overall profitability of a company Gross Profit Margin Ratio: Indicates profitability per product to determine the price Return on Sales Ratio: Compares profit to sales to determine if desired returns are occurring The Financial Ratios module is extremely user-friendly: the data is pulled right from existing financial stateme nts and displayed in an easy to read graph that compares year-to-date information from this year to last year and computes the difference for trend analysis. Another feature is the Break Even Bogey chart, which calculates your break-even point (sales needed to cover all costs of doing business) for the month and charts it out over a 24-month period. This allows management to monitor and control costs. Most importantly, properly monitoring these ratios can help sustain positive growth and drop more dollars to the bottom line.