How to Use the Financial Doctor Feature in the Clear Path To Cash App

The Financial Doctor feature in the Clear Path To Cash App provides an in-depth ratio analysis of your company’s financial data. Follow this guide to learn how to effectively use this powerful tool and gain valuable insights into your business performance.

Step-by-Step Guide #

1. Choose Date Type and Period
   • Select the date type (e.g., monthly, quarterly, annually) and the period for the analysis. This helps the app to focus on the specific timeframe you want to analyze.
2. Performing Ratio Analysis
   • Once the date type and period are selected, the app will automatically perform a ratio analysis on your financial data. The app will also compare your company’s results to the industry average for each ratio.

Understanding the Ratios #

The Financial Doctor feature analyzes the following ratios:

1. Current Ratio
2. Quick Ratio
3. Debt to Equity Ratio
4. Gross Profit Margin
5. Net Profit Margin
6. Sales to Assets Ratio
7. EBITDA as a Percentage of Sales Ratio
8. Return on Assets
9. Return on Investment
10. Inventory Turnover Rate
11. Accounts Receivable Turnover Rate
12. Accounts Payable Turnover Rate
13. Days Cash on Hand

Ratio Analysis Sections #

Each ratio is presented in a dedicated section on the analysis page. Here’s what you’ll find in each section:

1. Name of the Ratio and Result
   • The name of the ratio along with the computed result for the selected period.
2. Simple Explanation Phrase
   • A brief explanation of what the ratio means and why it is important.

1. Drop-down Menu for Rating
   • A drop-down menu to grade the ratio as good, fair, or terrible. The app assigns a rating based on the comparison with the industry average.

1. Comparison Graph
   • A graph indicating if the result is below average, average, or above average compared to industry standards.

1. Historical Chart
   • A chart showing the ratio’s trend over the last 12 periods entered into the app.

1. Summarized Analysis Section
   • A concise summary with an attention-getting headline that highlights the key findings from the ratio analysis.
2. Conclusions Section
   • Detailed conclusions to help you understand what the results mean for your business.
3. Suggestions Section
   • Actionable suggestions to help you plan strategies for improving your company’s performance based on the ratio results.

Tips for Effective Use #

• Regular Updates: Ensure your financial data is regularly updated in the app for the most accurate analysis.
• Industry Comparisons: Pay close attention to how your ratios compare to industry averages to identify areas of strength and weakness.
• Actionable Insights: Use the suggestions provided to implement strategies that can improve your business’s financial health.
• Historical Trends: Review historical charts to understand long-term trends and make informed decisions.

Need More Help? #

If you encounter any issues or have further questions about using the Financial Doctor feature, please submit a request through the Contact Us link on the left side menu of the app or contact our customer service team for assistance at cashflowmike@cashflowmike.com.

By leveraging the Financial Doctor feature, you can gain a deeper understanding of your business’s financial health and make data-driven decisions to drive growth and success.