Ratio Formulas in Bukers Taxanalysis
In the Bukers Taxanalysis software we have tried to make our ratio formats as comprehensive as possible in their diversity and completeness. Now and then, we get a call from a customer asking about the ratio formulas in the software. Let’s take a look at the ratios in Bukers Taxanalysis and where to view their formulas.
The Ratios section in our Taxanalysis software consists of 3 categories and a total of 10 ratios. The categories and their corresponding ratios are:
Applicable Ratios Before Taxes & Living Expenses
Housing Ratio (Front End)
Combined Debt Ratio (Back End)
Applicable Ratios Before Living Expenses
Existing Debt/Income Ratio
Projected Debt/Income Ratio
Existing Coverage Ratio
Projected Coverage Ratio
Applicable Ratios After Living Expenses
Existing Debt/Income Ratio
Projected Debt/Income Ratio
Existing Coverage Ratio
Projected Coverage Ratio
Viewing Ratio Formulas - Method 1
Probably the easiest way to see the ratio formulas is to go into the Help file. To do this:
Select Help from the Help menu at the top of the screen in the Bukers Taxanalysis software, then click on the Index tab. Type the word Ratio into the Keyword box, then find Ratio Formulas in the list. Click on the Display button at the bottom of list. On the right side of the page, you will see the formulas listed. If you would like to print this list, click on the printer icon on the menu at the top of the page.
Viewing Ratio Formulas - Method 2
The alternative method to viewing ratio formulas is to go to the area where they can be customized. We will go into more specifics about customizing ratios in the next newsletter.
Once you have a borrower file open in the Bukers Taxanalysis software, click the Ratios button at the bottom of the screen. When the ratios window opens look at the bottom left of the screen. Here you will find a Customize button. Click the button and when the Ratio Customization window opens select a ratio category from the list then click Next.
Select the ratio you would like to view then click the Edit button. This will bring up the Ratio Editor. The Ratio Editor has 3 sections. The section on the left will be discussed in the next newsletter about ratio customization. Today, we will concentrate on the two sections on the right which represent the numerator and the denominator of the ratio calculation. If you notice an item is RED, the value for that item is being subtracted.
As always, if you ever have a question about how to do something in either Bukers Taxanalysis or Bukers BTA or would like to schedule a complimentary training, give us a call at (503) 520-1303.