Building Your Ratio Dashboard
Create a systematic framework for organizing and tracking essential financial ratios.
Learning Objectives
- Identify essential ratios for any stock analysis
- Organize ratios by purpose and priority
- Create effective comparison templates
- Build quick-check ratio screens
Building Your Ratio Dashboard#
Professional analysts don't randomly check ratios—they use systematic frameworks to ensure consistent, thorough analysis. A well-designed ratio dashboard helps you quickly assess any company and spot issues before diving deeper.
The Goal: Create a repeatable process that covers all major aspects of a company's financial health in 15-30 minutes, allowing you to quickly filter opportunities and identify areas needing deeper research.
The Essential Ratio Framework#
Tier 1: Must-Check Ratios#
These ratios provide the foundation for any analysis:
| Category | Ratio | What It Tells You |
|---|---|---|
| Valuation | P/E Ratio | Price relative to earnings |
| Valuation | EV/EBITDA | Debt-neutral valuation |
| Profitability | ROE | Return on shareholder capital |
| Profitability | Net Margin | Profit efficiency |
| Strength | Debt/Equity | Leverage level |
| Strength | Interest Coverage | Debt payment ability |
| Efficiency | Asset Turnover | Asset utilization |
| Growth | Revenue Growth | Top-line expansion |
Tier 2: Important Context#
Add these for deeper understanding:
| Category | Ratio | When It's Critical |
|---|---|---|
| Valuation | P/B Ratio | Banks, asset-heavy companies |
| Valuation | P/FCF | Cash flow quality check |
| Profitability | ROIC | Capital allocation |
| Profitability | Gross Margin | Pricing power |
| Strength | Current Ratio | Short-term liquidity |
| Strength | Debt/EBITDA | Debt capacity |
| Efficiency | Cash Conversion Cycle | Working capital |
| Growth | EPS Growth | Earnings trajectory |
Tier 3: Industry-Specific#
Choose based on company type:
| Industry | Key Additional Ratios |
|---|---|
| Banks | P/Tangible Book, Net Interest Margin, Loan Loss Reserves |
| REITs | Funds From Operations (FFO), Cap Rate |
| Retail | Same-Store Sales, Inventory Turnover |
| SaaS | Revenue Retention, Customer Acquisition Cost |
| Insurance | Combined Ratio, Loss Ratio |
Organizing Your Dashboard#
Category-Based Layout#
Recommended Dashboard Structure
Organize ratios in the order of your analysis flow: Valuation → Profitability → Financial Strength → Efficiency → Growth → Quality
Section 1: Valuation Quick Look
| Metric | Company | Industry | S&P 500 |
|---|---|---|---|
| P/E (TTM) | — | — | — |
| P/E (Forward) | — | — | — |
| EV/EBITDA | — | — | — |
| P/B | — | — | — |
Section 2: Profitability Check
| Metric | Company | 5-Yr Avg | Industry |
|---|---|---|---|
| ROE | — | — | — |
| ROA | — | — | — |
| Net Margin | — | — | — |
| Operating Margin | — | — | — |
Section 3: Financial Health
| Metric | Company | Safety Level |
|---|---|---|
| Debt/Equity | — | — |
| Interest Coverage | — | — |
| Current Ratio | — | — |
| Debt/EBITDA | — | — |
Section 4: Efficiency & Growth
| Metric | Company | Trend | Industry |
|---|---|---|---|
| Asset Turnover | — | — | — |
| Revenue Growth (3yr) | — | — | — |
| EPS Growth (3yr) | — | — | — |
| FCF Growth (3yr) | — | — | — |
Quick-Check Screens#
The 5-Minute Health Check#
Use this to quickly filter stocks:
| Screen | Pass If |
|---|---|
| Profitable? | Net Income > 0 (or improving) |
| Reasonable Valuation? | P/E < 25 or justified by growth |
| Not Over-Leveraged? | D/E < 1.5 (industry-adjusted) |
| Can Pay Debt? | Interest Coverage > 3x |
| Growing? | Revenue growth positive |
Red Flag Screen#
Immediately investigate if any are true:
| Red Flag | Threshold |
|---|---|
| Interest Coverage | < 2.0x |
| Current Ratio | < 1.0 (non-retail) |
| Debt/EBITDA | > 4.0x |
| Negative FCF | 3+ consecutive years |
| Declining Revenue | 3+ consecutive years |
| Payout Ratio | > 100% |
Value Screen Example#
| Criterion | Target |
|---|---|
| P/E Ratio | < 15 |
| P/B Ratio | < 2.0 |
| Dividend Yield | > 2% |
| ROE | > 12% |
| D/E | < 0.8 |
Growth Screen Example#
| Criterion | Target |
|---|---|
| Revenue Growth | > 15% |
| EPS Growth | > 15% |
| ROE | > 15% |
| Gross Margin | > 40% |
| Debt/EBITDA | < 2.5x |
Comparison Templates#
Peer Comparison Table#
| Metric | Company | Peer 1 | Peer 2 | Industry Median |
|---|---|---|---|---|
| P/E | — | — | — | — |
| EV/EBITDA | — | — | — | — |
| ROE | — | — | — | — |
| Net Margin | — | — | — | — |
| D/E | — | — | — | — |
| Revenue Growth | — | — | — | — |
Historical Trend Table#
| Metric | Current | 1Y Ago | 3Y Ago | 5Y Ago |
|---|---|---|---|---|
| P/E | — | — | — | — |
| ROE | — | — | — | — |
| Net Margin | — | — | — | — |
| D/E | — | — | — | — |
| Revenue | — | — | — | — |
Building Your Process#
Step 1: Initial Filter (2 minutes)#
- Run quick-check screen
- Check for red flags
- Decide: Deep dive or pass?
Step 2: Dashboard Review (10 minutes)#
- Fill in Tier 1 ratios
- Compare to industry medians
- Note any outliers (good or bad)
Step 3: Deep Analysis (15+ minutes)#
- Add Tier 2 ratios as needed
- Run peer comparison
- Check historical trends
- Investigate outliers
Consistency Is Key
Use the same dashboard for every stock you analyze. Over time, you'll develop intuition for what "normal" looks like and spot outliers instantly.
Data Sources#
Free Sources#
- Company investor relations (10-K, 10-Q filings)
- Yahoo Finance (basic ratios)
- Finviz (screening and quick ratios)
- SEC EDGAR (official filings)
Paid Sources#
- Bloomberg Terminal (professional)
- Capital IQ / FactSet (institutional)
- Morningstar (retail-focused)
- Koyfin (modern interface)
Key Takeaways
- Tier 1 ratios (P/E, EV/EBITDA, ROE, D/E, etc.) are essential for every analysis
- Organize dashboard by category: Valuation → Profitability → Strength → Efficiency → Growth
- Quick-check screens filter opportunities in 5 minutes
- Red flag screens identify immediate risks (Interest Coverage <2x, D/E >1.5, etc.)
- Comparison templates help benchmark against peers and history
- Use consistent process for every stock to build pattern recognition
- Start with free sources (Yahoo Finance, SEC filings) before paying for data