How financially healthy is your business?

This tool scores five areas out of 100: liquidity, profitability, collections, debt cover, and financial discipline. Above 79 means your finance function is an operating strength. Between 60 and 79 the fundamentals work but something is lagging. Below 40 usually means cash or margin needs attention before anything else. The score is only as good as the figures you enter, so use a representative month rather than your best one.

Divide the cash you hold by your monthly net burn — the amount by which operating costs exceed the cash coming in. If you are profitable you are not on a countdown at all, so this tool reports "not burning cash" instead of inventing a number. As a rule of thumb, 6 months or more of runway is comfortable, 3 to 6 months warrants a plan, and under 3 months is a funding emergency.

Debtor days (also called DSO) estimate how long customers take to pay: receivables divided by monthly revenue, times 30. This tool treats 45 days or fewer as healthy and anything over 75 days as critical. Those bands are wider than the textbook 30 to 45 days because UAE B2B payment behaviour genuinely runs longer — applying a US or UK threshold would flag almost every healthy UAE business as being in trouble.

It depends entirely on what you sell, which is why this tool asks for your business type before scoring it. A 20% gross margin is perfectly normal for a trading business and alarming for a services firm, where anything under 30% signals a pricing or delivery-cost problem. Manufacturing sits between the two. Comparing your margin to a single universal benchmark is one of the most common ways owners misread their own numbers.

The current ratio compares what you can turn into cash quickly — cash plus receivables — against what you owe in the short term. A ratio of 2.0 or higher is comfortable; below 1.0 means your short-term obligations exceed your liquid assets, which is a solvency warning even if the business is profitable on paper. Profitable businesses do fail this test, usually because cash is locked up in unpaid invoices.

It is operating profit divided by loan repayments, and it answers whether the business comfortably covers its debt. Lenders conventionally want 1.25× or better; below 1× the business is not generating enough to service its borrowing. If you have no debt this ratio does not apply, and this tool drops it from your score entirely rather than scoring you zero on it.

Two thresholds matter. VAT registration becomes mandatory once taxable turnover passes AED 375,000 over a rolling 12 months, and late registration carries a AED 10,000 penalty. Corporate tax is charged at 9% on taxable income above AED 375,000, with Small Business Relief electable where revenue is at or below AED 3,000,000. Businesses running on cash-basis bookkeeping often discover the liability late, which is why bookkeeping currency is part of this score.

No. It is an informational self-assessment, not accounting, tax, or investment advice. The ratios come from the figures you enter and are compared against general small-business benchmarks; your real position depends on your sector, contract terms, seasonality, and how your books are kept. Confirm with a qualified advisor before acting on it.