What Three Years of Ratios Actually Show: DuPont decomposition, covenant headroom, and peer-benchmark deep-dives for the operator preparing for a credit review or board meeting.

A six-question diagnostic intake routes the reader to the right tool based on which calibration is most overdue.

DuPont Three-Year Diagnostic. Decomposes ROE across three years into margin, turnover, and leverage components, surfacing which lever has actually moved. Two worked examples: a consumer goods distributor running a three-year DuPont decomposition, and a B2B wholesale textile distributor showing how single-channel manufacturing context shifts the diagnostic.

Covenant Headroom Analysis. Reconstructs the headroom on every active loan covenant against current and projected ratios. Two worked examples: a single-facility B2C operator running pre-renewal headroom analysis, and a multi-facility medical devices distributor running cross-facility covenant headroom across multiple banking relationships.

Peer-Benchmark Deep-Dive. Maps current ratios against published industry benchmarks and against named peer set, surfacing where the gap reflects strategy versus where it reflects underperformance. Two worked examples: a consumer goods B2C operator running a domestic benchmark, and an agricultural equipment dealer running a multi-channel B2B benchmark across distinct customer segments.

Each tool carries a self-scoring rubric, a quick decision tree, and tier adaptations for single-owner shops, mid-tier businesses, and pre-IPO operations. A quarterly plan at the back sequences the three tools across one full quarter.

Written from the seat of an operator running businesses in Indonesia — examples, currency, and context reflect that origin. Operators in other emerging markets and SME settings will find the frameworks apply with minimal translation.

What this companion does NOT do

Replace Financial Ratio Analysis (Operator Playbooks 19).

Substitute for the weekly-rhythm tools.

Address scenario-triggered ratio crises.

Who This Is For

Operators running the weekly ratio checks who now need quarterly structural recalibration.

Owners with bank covenants up for renewal who want a structured headroom test.

Mid-tier directors heading into board meetings, bank credit reviews, or investor due diligence.

Topics and Keywords quarterly financial ratio review, DuPont decomposition, covenant headroom, peer benchmark analysis, ratio recalibration, SME financial analysis, operator playbook companion