Financial Advisory for Ratio Improvement

Helping businesses improve financial health through better ratios, smarter strategies, and structured monitoring.
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Strong financial ratios reflect the real strength of a business. At Dhankraft Capital, we work with companies to identify weak areas in liquidity, profitability, solvency, and efficiency, and then provide practical strategies to improve them. Our approach covers detailed analysis, restructuring plans, and hands-on support for execution. With continuous monitoring and clear reporting, we help businesses strengthen their financial position, reduce risks, and create a more stable base for growth and future decision-making.

Areas We Focus On to Improve Your Ratios

Here’s how we address every aspect of financial health, from liquidity to profitability and long-term stability.

Advisory services for enhancing key financial ratios, improving financial health, and optimizing business performance.
Analyse financial statements to identify weaknesses, and recommend strategic measures to enhance liquidity, profitability, solvency, and efficiency ratios.
Objectives

  • Assess current financial health based on key financial ratios.
  • Identify areas of weakness affecting financial performance.
  • Recommend strategies to improve financial ratios.
  • Assist in implementing financial restructuring and efficiency measures.
  • Monitor progress and provide periodic updates.  

A. Liquidity Ratios (Assess ability to meet short-term obligations)

  • Current Ratio: Improve through better working capital management.
  • Quick Ratio: Optimize cash flow and receivables turnover.

B. Profitability Ratios (Enhance earnings performance)

  • Gross Profit Margin: Reduce cost of goods sold (COGS) through better procurement and pricing strategies.
  • Net Profit Margin: Improve operational efficiency and cost control.
  • Return on Assets (ROA): Maximize asset utilization and revenue generation.

c. Solvency Ratios (Ensure long-term financial stability)

  • Debt-to-Equity Ratio: Optimize capital structure by reducing unnecessary debt. / aim for optimal debt equity ratio to maximize return on equity
  • Interest Coverage Ratio: Improve earnings before interest and taxes (EBIT) and restructure high-cost debt.

D. Efficiency Ratios (Enhance operational performance)

  • Inventory Turnover Ratio: Optimize inventory management to improve cash flow.
  • Accounts Receivable Turnover: Implement better credit policies and collection strategies.

Phase 1: Financial Analysis and Diagnosis

  • Review financial statements (Balance Sheet, P&L, Cash Flow).
  • Benchmark against industry standards.
  • Identify weak financial ratios and causes.

Phase 2: Strategic Recommendations

  • Develop a financial restructuring plan.
  • Suggest revenue enhancement and cost reduction strategies.
  • Recommend working capital optimization techniques.

Phase 3: Implementation Support

  • Assist in executing financial improvements.
  • Provide guidance on capital allocation and budgeting.
  • Monitor progress and adjust strategies as needed.

Phase 4: Performance Monitoring & Reporting

    • Provide periodic financial ratio analysis reports.
    • Adjust strategies based on real-time financial performance.

Financial Health Report (Current ratio analysis and key findings), Strategic Improvement Plans (Action plan for improving financial ratios), Implementation Roadmap (Step-by-step guidance for execution), Monthly/Quarterly Performance Reports (Tracking improvements), etc. 

Objectives

  • Assess the company’s financial position using key ratios.
  • Identify gaps that weaken performance and stability.
  • Recommend clear steps to improve liquidity, profitability, solvency, and efficiency.
  • Support implementation of restructuring and cost-saving measures.
  • Track progress with periodic reports and adjust strategies when needed.
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