Balance sheet risk dashboard

Financial Stability & Risk Analyzer

Turn your balance sheet and profit figures into a simple stability score. Check liquidity, gearing, returns and cash runway with clear, plain language risk commentary.

1. Enter your latest balance sheet and P&L figures

Liquidity section
Current assets (RM)
Cash, bank, trade receivables, inventory and other short term assets.
Current liabilities (RM)
Trade payables, short term loans, OD, accruals due within 12 months.
Cash and bank balances (RM)
Cash on hand, current accounts, short term deposits.
Inventory (RM)
Stocks, raw materials and WIP from your balance sheet.
Solvency and capital structure
Total assets (RM)
Total assets as per balance sheet (fixed + current).
Total liabilities (RM)
All borrowings and payables (current and non current).
Total equity - shareholders funds (RM)
Paid up capital plus retained earnings or accumulated losses.
Profitability and fixed expenses
Net profit after tax (RM, annualised)
Use full year net profit if possible. For shorter periods, annualise for better ratios.
Monthly fixed expenses (RM)
Rent, permanent salaries, utilities, minimum loan instalments and other fixed overheads.

Tip: You can use management accounts instead of audited numbers as long as they are from the same cut off date.

2. Stability score and key risk indicators

Enter your figures on the left to see an overall stability reading.

Liquidity profile

- x
Waiting for data
Quick ratio: - x
Cash ratio: - x
Healthy liquidity usually shows current ratio above 1.0x and quick ratio close to or above 1.0x.

Leverage and capital structure

- x
Waiting for data
Debt vs equity: -
A gearing ratio above 2.0x means the business is highly debt funded and more sensitive to interest rates.

Return on assets and equity

- %
Waiting for data
ROA: - %
Strong businesses usually show sustainable ROE above 10 % with reasonable leverage.

Cash runway

- months
Waiting for data
Cash vs monthly fixed expenses not yet entered.
As a rule of thumb, more than 6 months of runway gives time to respond to shocks. Less than 3 months is tight.
Metric Result Benchmark Status
Current ratio - > 1.0x Pending
Quick ratio - > 0.8x Pending
Cash ratio - > 0.3x Pending
Gearing (debt to equity) - < 1.5x Pending
Return on assets (ROA) - > 5 % Pending
Return on equity (ROE) - > 10 % Pending
Cash runway - > 6 months Pending
Cash runway gauge Waiting for inputs
0 months 6 months (target) 12+ months
Insights will appear here

Once you key in your balance sheet and profit figures, the analyzer will calculate liquidity, leverage, returns and cash runway, then translate the ratios into a simple stability reading with suggested next steps.

Disclaimer: This financial risk analyzer uses standard accounting ratios and generic benchmark ranges to provide a high level view of business stability. It is based entirely on the figures you enter and does not replace audited accounts, formal credit ratings or professional advice. Always consult a licensed auditor, accountant or financial advisor before making major funding or investment decisions.

Liquidity, solvency and cash runway explained

A set of financial statements can look complicated, but a few core ratios already tell a clear story about stability. Liquidity ratios show how easily a business can meet short term obligations. Solvency ratios show how heavily it relies on debt. Return ratios show whether assets and equity are being used efficiently.

The difference between liquidity and solvency risk

Liquidity risk is about timing. A business can be profitable on paper but still fail if it cannot pay suppliers, staff or banks when payments fall due. Current ratio, quick ratio and cash ratio focus on this short term ability to pay.

Solvency risk is about structure. A company that is heavily funded by debt rather than equity will show a high gearing ratio. This can amplify returns in good times but increase default risk when interest rates rise or sales slow.

Interpreting gearing ratio by industry

There is no single perfect gearing level for all businesses. Asset heavy industries like property or infrastructure often carry more debt, while service based firms tend to be lighter. As a simple starting point:

  • Debt to equity below 0.8x often indicates a conservative balance sheet.
  • Debt to equity between 0.8x and 1.5x is common for many SMEs.
  • Debt to equity above 2.0x suggests elevated leverage and higher sensitivity to shocks.

The analyzer does not replace detailed peer comparison, but it highlights when leverage is clearly stretched relative to typical comfort zones.

Why cash runway is critical

Cash runway converts the static statement into a time based survival metric. It answers a simple question: "If sales went to zero, how many months could we still pay fixed bills with the cash on hand."

A runway of less than 3 months means the business has little buffer. Management may need to act quickly to conserve cash, negotiate with lenders or raise fresh capital. Six to twelve months gives time to adjust strategy and ride through a typical downturn.

Using the stability analyzer in practice

The ratios and commentary are most useful when you:

  • Track them every quarter to see whether risk is building up slowly over time.
  • Compare group wide numbers with branch or subsidiary level numbers to spot weak spots.
  • Use them as a shared language with your banker, investor or board when discussing funding plans.

The goal is not to chase one perfect ratio, but to keep liquidity, leverage, returns and runway aligned with your business model and risk appetite. Small proactive adjustments are usually easier than large emergency repairs.