Financial Analysis
The Financial Analysis area groups two read-only tools that help you interpret your company's financial health from your Chart of Accounts: DuPont Analysis, which breaks down your return on equity into its three classic drivers, and Smart Financial Analysis, which compares your main balance sheet and income statement indicators between two periods and explains them with artificial intelligence.
What it is and what it's for
Both tools start from the movements already posted in your Chart of Accounts; you don't enter anything here, you only browse and filter. They help you answer questions like "how profitable is my company and why?" or "how did my financial position change compared to last month or last year?", without building the calculations by hand.
- DuPont Analysis. Breaks Return on Equity (ROE) down into Margin, Asset Turnover and Leverage (Equity Multiplier), showing where each number comes from in an interactive diagram or a printable report.
- Smart Financial Analysis. Shows, side by side, your Balance Sheet and Profit & Loss indicators as of the date you choose, optionally compared against last year or against another date you pick, with a button to ask the AI assistant (AtIna) to explain the results.
DuPont Analysis: how to use it
- Open DuPont Analysis. The screen opens on the Charts view, showing a tree diagram. The chart is interactive: you can search, expand or collapse branches, zoom in and out, switch between vertical and horizontal, and print it.
- Choose the year to analyze and, if needed, filter by Subsidiary, Location, Item Class, Department and/or Division to narrow the calculation to part of your company.
- Click Refresh to recalculate the diagram with the chosen filters.
- Click "Notes" inside any diagram box that has it, to see the exact formula behind that indicator (for example, how Margin or the Equity Multiplier is calculated).
- Switch to the Report view (link at the top) to see the same data as a Concept / Amount table, ready to print with the same filters applied.
DuPont Analysis: what each indicator shows
| Indicator | What it represents |
|---|---|
| Return on Equity (ROE) | The analysis's final result: Margin × Asset Turnover × Equity Multiplier. Measures how well your company turns its assets and leverage into profit. It equals the year's result divided by your equity. |
| Margin | The year's result (Revenue, less Costs and Expenses, plus the non-operating result) over your Revenue for the year. Measures what percentage of each sale becomes profit. |
| Asset Turnover | Revenue for the year over your total Assets. Measures how intensively you use your assets to generate sales. It is expressed in times, not as a percentage. |
| Equity Multiplier (leverage) | Total Assets over your Equity. Measures what proportion of your assets is financed with debt rather than your own capital. It is expressed in times, not as a percentage. |
| Assets (current and fixed) | Broken down into Cash, Bank, Inventory, Accounts Receivable and Other Current Assets, plus Fixed Assets, taken directly from your Chart of Accounts classification. |
| EBIT (earnings before interest and taxes) | Revenue minus Operating Expenses plus the year's Non-Operating Result. |
Smart Financial Analysis: how to use it
- Open Smart Financial Analysis. On load, AdmCloud automatically calculates the report as of today's date.
- Choose whether to compare the current period against something else, using the Comparison selector: no comparison, against last year on the same date, or against another date you pick.
- Adjust the date(s) and, if needed, filter by Subsidiary, Location, Item Class, Department and/or Division.
- Click Refresh to recalculate the indicator table with the chosen filters.
- Use the "View Detail" links above each date column to open, in a new tab, the full Balance Sheet or Profit & Loss statement for that date or range.
- Click Analyze with AtIna so AdmCloud's AI assistant opens a conversation about the analysis on screen, with the same figures and filters, ready for you to ask for a plain-language interpretation. If you change the filters, click Refresh first and then click the button again. See AtIna in reports.
Smart Financial Analysis: what the report contains
- Balance Sheet indicators. Your balance sheet rows (assets, liabilities, equity) as of the chosen cutoff date, with a comparison column if you turned it on.
- Income Statement indicators. Revenue, Costs, Expenses and the subtotals Gross Profit, Operating Result and Net Result, calculated for the range from January 1st of each year through the cutoff date.
- Comparison column. Only shows up if you chose "against last year" or "against another date"; if you don't compare, you only see the current period's column.
Availability, plan and modules
- Smart Financial Analysis has no plan restriction: it's available to any company, on any edition, as long as the user has browse privilege on the General Ledger Journal (GL_JOURNAL). The "Analyze with AtIna" button uses the same AI assistant available throughout AdmCloud.
- DuPont Analysis requires the Enterprise plan with the Advanced Finances module active for your company (the same module that enables Accounting Distribution Rules and Statistical Accounts); the feature must also be enabled for your account. If these conditions aren't met, AdmCloud shows "Not available in this edition" when you try to open it.
Tips and common mistakes
Both reports are read-only. They don't change your accounting; they always reflect what's already posted in your transactions, filtered by whatever you choose.
Use the dimension filters carefully. If you filter by Subsidiary, Location, Department, Division or Item Class, the indicators only consider movements that have that dimension assigned; a filter that's too narrow can make the totals not match your overall Balance Sheet.
If DuPont Analysis shows "Not available in this edition", check with your administrator whether your company has the Enterprise plan with the Advanced Finances module active. If you already have it and still see the message, the feature may not be enabled yet for your account; contact AdmCloud support.