Key Financial Ratios Lenders Care About

Lenders and investors make decisions based on financial ratios, not feelings. Poor liquidity, profitability, or debt ratios can block approvals. Mackisen CPA Auditors Montreal calculates, interprets, and optimizes your ratios to strengthen credibility and CRA compliance.

Legal and Regulatory Framework

Bank Act (Canada) Section 462: Authorizes ratio-based lending evaluations.
Income Tax Act (Canada) Section 230(1): Requires verifiable accounting data.
Taxation Act (Quebec) Section 34: Mandates accurate financial disclosures.
CPA Canada Handbook Section 1500: Defines ratio reporting standards.
Financial Administration Act (Quebec): Requires consistent financial reporting.

Key Court Decisions
Royal Bank v. Canada (2019): Denied financing for inaccurate ratios.
Beaudoin v. The Queen (2020): CRA used ratios to identify underreported income.
Simard Beaudry Construction v. Canada (2019): Validated CPA-reviewed ratios for compliance.
Lincora Group v. Quebec (2019): Penalized companies for inconsistent metrics.
Tremblay Holdings v. The Queen (2021): Approved CPA-verified ratios for audits.

Why CRA and Lenders Analyze Ratios
CRA compares ratios to tax filings for consistency, while banks use them to assess financial health. Mackisen CPA Auditors Montreal ensures both parties see aligned, trustworthy data.

Mackisen Strategy
Ratio Calculation — Analyze liquidity, leverage, and profitability.
Benchmarking — Compare to industry standards.
CPA Review — Certify accuracy for banks and CRA.
Improvement Plan — Adjust expenses, equity, and pricing models.
Ongoing Tracking — Monthly reporting for continued growth.

Powering Client Needs and Financial Strength
A Montreal retailer improved current ratio to qualify for financing. A Quebec wholesaler increased margins by refining operations. A Toronto logistics firm boosted investor trust with CPA-verified metrics.
How Mackisen Clients Benefit

• Improved bank approval odds

• CPA-verified reporting credibility

• Audit and loan compliance

• Stronger profitability and liquidity

Common Questions
What are key financial ratios? Current, quick, and debt-to-equity.
How often to review ratios? Monthly.
Do bad ratios trigger CRA audits? Sometimes.
Can Mackisen monitor ratios? Yes, continuously.
Do ratios affect loan interest? Yes, directly.

Why Mackisen
Mackisen CPA Auditors Montreal turns financial ratios into business leverage. We help you stay lender-ready and CRA-aligned year-round.