Ratios, and what an empty cell means
A ratio that could not be computed says why. It never becomes a zero.
The main rule: absent is not zero
If an input to a ratio is missing, the result is empty and carries the reason. Putting a zero where "we do not know" belongs is the one way an analysis page can lie.
The same holds for a zero denominator: the result is empty, not infinity.
Sign conventions
Trial balances carry expenses as positive debits, and some exports carry liabilities and equity as negatives. The sign is normalised from the chart of accounts, so expenses aggregate correctly.
Where the input makes that normalisation uncertain, the aggregate goes empty with a sign-convention reason rather than producing a meaningless negative. A negative leverage ratio is a number nobody should see.
Where a document carries both a subtotal and its components, the subtotal is preferred — it is the figure somebody signed off.
What else is here
- Flags on ratios that crossed a defined threshold
- Multi-period trends, with growth against the base period
- Common-size analysis — each line as a percentage of the total
- Client-level aggregation across all of a client's engagements
Read this next
- Financial analysisWhen a figure goes staleChange the source and everything built on top of it is flagged.
- Financial analysisSpread a statementFrom a read document to rows mapped onto the chart of accounts.
- When something does not workThe numbers look wrongBefore doubting the calculation, check these four things.
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