11 Ratio Analysis, Cash Flow and Fund Flow in Tally Prime
11.1 Ratio Analysis
Ratio Analysis provides key business ratios and financial performance metrics based on your accounting data, like profitability, liquidity, and efficiency.
11.1.1 How to View Ratio Analysis
- Open Tally Prime.
- Go to
Gateway of Tally > Ratio Analysis. - The report displays Principal Groups (Working Capital, Cash-in-Hand, Bank Accounts, Debtors, Creditors, Stock-in-hand, Net Profit, etc.) and Principal Ratios (Current Ratio, Quick Ratio, Gross Profit %, Net Profit %, Return on Investment %, Inventory Turnover, Debt/Equity, etc.).
- Press
F2to set the reporting period as required. - Drill-down: Highlight any ratio or group, press
Enterfor detailed underlying ledgers and calculations. - For horizontal/vertical view toggle, use
F5if available. - Export the report with
Alt+Efor Excel/PDF.
Example Ratios shown: - Current Ratio (Current Assets / Current Liabilities) - Gross Profit % - Net Profit % - Inventory Turnover
💡 Tip: You can click on any ratio (e.g., Gross Profit %) to drill to Profit & Loss, or on Current Ratio to go to Balance Sheet for full calculation.
11.2 Fund Flow Statement
11.2.1 What is Fund Flow?
Fund Flow tracks the Source and Application of funds to analyze changes in working capital over a period.
11.2.2 How to View Fund Flow Statement
- Open Tally Prime.
- Go to
Gateway of Tally > Display More Reports > Funds Flow. - Set the period (
F2) — e.g., 01-04-2024 to 31-03-2025. - The statement shows:
- Sources of Funds: Profit from operations, fundraising, decrease in working capital, etc.
- Application of Funds: Purchases, investments, loan repayments, increase in working capital.
- Drill down by pressing
Enteron any line for group or voucher level detail. - Export with
Alt+Eas required.
Example: - Opening Working Capital: ₹2,00,000 - Closing Working Capital: ₹2,50,000 - Net Increase: ₹50,000 (Funds generated from operations/financing)
💡 Tip: Use Fund Flow to analyze long-term funding and application of capital, not just short-term liquidity.
11.3 Cash Flow Statement
11.3.1 What is Cash Flow?
Cash Flow gives a detailed overview of all cash inflows and outflows, helping you track liquidity and plan for payments, expenses, and investments.
11.3.2 How to View Cash Flow Statement
- Open Tally Prime.
- Go to
Gateway of Tally > Display More Reports > Cash Flow. - Set the reporting period using
F2(e.g., 01-04-2024 to 31-03-2025). - The report lists:
- Opening Balance
- Receipts (sources of cash: collections, sales, loans, etc.)
- Payments (uses of cash: supplier payments, expenses, investments, etc.)
- Closing Balance
- Press
F5for a month-wise or vertical representation (visualize cash trends). - Press
Alt+F5for a graphical report of cash flows if available. - Export or print using
Alt+E/Ctrl+P.
Practical Example - Opening cash balance: ₹75,000 - Receipts: ₹2,80,000 (including sales, loan proceeds, etc.) - Payments: ₹2,40,000 (supplier payments, wages, rent) - Closing cash balance: ₹1,15,000
💡 Tip:
Drill down on any figure to view the individual vouchers behind the flow.
11.4 General Tips & Troubleshooting
- Always check your date periods with
F2—incorrect periods cause missing/misleading reports. - For accurate analysis, ensure all vouchers (including non-cash) are properly recorded and classified.
- For Fund and Cash Flow, transfers between accounts (cash to bank, etc.) are not shown as business cash movement.
- Use export features for detailed audit and MIS.
11.5 Summary Table: Where to Find Reports in Tally Prime
| Report | Menu Path |
|---|---|
| Ratio Analysis | Gateway of Tally > Ratio Analysis |
| Fund Flow | Gateway of Tally > Display More Reports > Funds Flow |
| Cash Flow | Gateway of Tally > Display More Reports > Cash Flow |