Key Financial Ratios Lenders Care About — And How To Improve Them

Financial ratios are the language of lenders. They show whether your business is liquid, efficient, and stable. Poor ratios mean rejection—even if profits look strong. Mackisen CPA Auditors Montreal calculates, interprets, and improves your financial ratios with CPA precision, ensuring CRA-aligned reporting and financing success.

Legal and Regulatory Framework
Bank Act (Canada) Section 462: Authorizes financial ratio reviews in lending.
Income Tax Act (Canada) Section 230(1): Requires accuracy in financial disclosures.
Taxation Act (Quebec) Section 34: Enforces correct reporting of assets and liabilities.
CPA Canada Handbook Section 1500: Defines ratio presentation principles.
Financial Administration Act (Quebec): Regulates disclosure accuracy for lenders.

Key Court Decisions
Royal Bank v. Canada (2019): Denied loans due to poor liquidity ratios.
Beaudoin v. The Queen (2020): CRA used ratios to verify underreported income.
Simard Beaudry Construction v. Canada (2019): Approved CPA-reviewed ratios for audit defense.
Lincora Group v. Quebec (2019): Penalized misclassified debt-to-equity ratios.
Tremblay Holdings v. The Queen (2021): Validated ratio analysis as compliance evidence.

Why CRA and Lenders Care
CRA uses ratio analysis to detect inconsistencies in reported earnings, while banks use them to assess solvency. Mackisen ensures ratios present an accurate and trustworthy picture.

Mackisen Strategy
Financial Ratio Analysis — Calculate liquidity, profitability, and leverage ratios.
Benchmarking — Compare with industry and CRA standards.
Ratio Optimization — Implement strategies to improve performance.
CPA Reporting — Certify ratio accuracy for lenders and CRA.
Monitoring — Provide monthly dashboards to track progress.

Powering Client Needs and Approval Confidence
A Montreal wholesaler raised its current ratio and secured a new line of credit. A Quebec distributor improved profit margins after Mackisen identified inefficiencies. A Calgary manufacturer increased loan eligibility through ratio improvement.
How Mackisen Clients Benefit

• Improved loan eligibility

• CPA-verified financial transparency

• Continuous monitoring and reporting

• Enhanced credit ratings

Common Questions
Which ratios do banks check? Current, debt-to-equity, and coverage ratios.
Does CRA analyze ratios? Yes, during audits.
Can poor ratios trigger audits? Potentially, if inconsistent with filings.
Can Mackisen improve them? Yes, through CPA-led restructuring.
How often should I update ratios? Monthly for optimal control.

Why Mackisen
Mackisen CPA Auditors Montreal transforms numbers into credibility. We make your ratios your greatest advantage for compliance, financing, and growth.