Keywords: Ratio, Robert Morris Assocaites, RMA, Comparitive Ratio Analysis
Description: Example of comparing actual data to standard ratios from Robert Morris Associates(RMA).
Tip: RMA comparative ratios are available in the reference
section of most business libraries. See the sheet named RMA for
more information. Lending institutions use the RMA ratios as one
measure of a business that is applying for a loan. By becoming
familiar with the RMA ratiios, you can improve the financial
measures of your business - before it is time to apply for a
loan.
You can use Excel formulas to compare actual data to RMA ratios
and show variances. Use Goal seek to experiment with changes the
the actual needed to bring data in line with RMA averages.
Guide to the Example: The sheet "Ratios" is
protected - actual data can only be entered in selected cells in
column C. RMA data is entered in column E. If you want to change
the sheet, use menu option Tool, Protection, UnProtect sheet to
unlock all cells.
Ratio formulas use range names so that you can easily determine
source of data.
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