Days sales outstanding

13003 Account receivable, Ending Balance * Days in YTD period / (-1 * 43002 Trade sales of goods/services/resources, Cumulative Year-to-Date Activity

This ratio shows the average number of days a company takes to collect payment after a sale is made. Increases or decreases in this ratio may indicate a firm struggling to collect on credit-based sales or issues with a portion of the firm’s customer base.

IS & BS

Days Expenses in Accounts Payable 

(-1 * 23002 Accounts payable, taxes payable, and accrued liabilities ending balance) * Days in YTD period / Expenses, Cumulative Year-to-Date Activity

This ratio shows the average number of days it takes for a company to pay its suppliers. The majority of companies aim for a short average days payable ratio as this indicates that they are able to meet their financial obligations toward their suppliers. If the ratio increases, it could be an indication that the company is having difficulty paying its bills.

IS & BS

Prior period accounts payable as percentage of cash disbursements

(-1 * 23002 Accounts payable, taxes payable, and accrued liabilities, Opening Balance) / 13002 Cash and cash-equivalent assets, Credit Amount)

This ratio compares overall amounts owing in the previous period to cash disbursements occurring in this period. Increases or decreases could indicate periods where payments were halted, paused, increased or accelerated.

BS

Cash receipts to revenue

13002 Cash and cash-equivalent assets, Debit Amount / (-1 * 41000 Revenue Activity)

This ratio compares the cash received in a period with the revenue booked in the same period.  Increases or decreases could indicate cash payments received without accompanying revenues or increase/decrease in revenue without an expected impact to cash.

IS & BS

Sales returns & allowances to gross sales

(44010 Refunds (contra), Activity + 44009 Discounts on sale revenue (contra), Activity) / (-1 * 44011 Trade sales of goods and services, Activity)

This ratio compares the total amount of refunds and discounts in a period to the total amount of sales in the same period.  Increases or decreases in this ratio could indicate additional or extraordinary refunds or discounts offered to artificially impact sales.

IS

Bad write-off to accounts receivable

54075 Bad debts, Activity / 13003 Accounts receivable, Opening Balance

This ratio compares the amount of bad debt write-off in the accounts receivable account in a period with the final balance in accounts receivable in the prior period.  Increases or decreases in this ratio could indicate abnormal amounts of product that were purchased in a period followed by the write-off of the same product in the subsequent period, artificially inflating revenue numbers for a short time.

IS & BS

Total other expenses to total expenses

([-1 * 42001 Unspecified revenue, Activity] + [-1 *43003 Investment revenue, Activity] + [-1 * 43004 Interest income from financial institutions, Activity] + [-1 * 43007 Realized gains on disposal of assets Activity] + [-1 * 43009 Other revenue, Activity] - [-1 * 44090 Sale of by-product, Activity]) + (52001 Unspecified expenses, Activity + 53007 Liability write-off expense, Activity + 53012 Interest and bank charge expense, Activity + 53022 Losses, Activity + 91000 Extraordinary, Activity - 54002 Purchase discounts (contra), Activity) / 52002 Direct costs, Activity + 52003 Operating expenses, Activity - 53007 Liability write-off expense, Activity - 53012 Interest and bank charge expense, Activity - 53022 Losses, Activity

 This ratio compares income and expenses contained in the “other” category with direct costs (labor, materials) and operational expenditures such as office supplies, rent or utilities.  Increases or decrease in this ratio may indicate expenses that have been recorded incorrectly either intentionally or by error.

IS

Depreciation expense over PPE

([54040 Direct cost amortization of tangible assets, Cumulative Year-to-Date Activity + 53010 Amortization expense for tangible assets, Cumulative Year-to-Date Activity] * 365 / Days in YTD period) / 13012 Building-related, Ending Balance + 13013 Capital-lease-related, Ending Balance + 13014 Other tangible capital assets, Ending Balance

This ratio compares the annualized depreciation expense over the value of plant, property and equipment.  An increase or decrease in this ratio may indicate an alteration to the method for calculating depreciation or changes to the amount of plant, property and equipment.  

IS & BS

Allowance for doubtful accounts to receivables 

-1 * 14027 Allowance for doubtful accounts receivable, Ending Balance / 14028 Trade accounts receivable, Ending Balance

This ratio indicates the percentage of trade accounts receivable expected to be uncollectible. An increase or decrease in ratio may indicate the change in financial health of the company’s clients.

BS

Income tax expense as a percentage of pre tax income

54303 Income tax expense Activity / -1 * (41000 Revenue, Activity + 51000 Expenses, Activity - 54303 Income tax expense, Activity)

This ratio compares the income tax expense to the pre tax income. An increase or decrease in this ratio may indicate tax amounts that are withheld or changes to the amount of pre calculated tax paid by the business based on its pre tax income.  

IS

Amortization expense as a percentage of intangible assets

(53006 Amortization expense for intangible assets, Cumulative Year-to-Date Activity * 365 / Days in YTD period) / 13015 Intangible capital assets, Ending Balance

This ratio compares the annualized amortized expense amount to the amount in intangible assets.  An increase or decrease in this ratio may indicate a change in the method used to amortize intangible assets or changes in intangible asset amounts. 

IS & BS

Investment earnings as a percentage of investments and notes receivables

-1 * (43003 Investment revenue, Activity + 43004 Interest income from financial institutions, Activity) / 13005 Short-term investments, Ending Balance + 13006 Loans and notes receivable, Ending Balance + 13007 (cur) Due from shareholders, directors, partners, members, Ending Balance + 13008 (cur) Due from/investments in related parties, Ending Balance + 13016 (l-t) Due from shareholders, directors, partners, members, Ending Balance + 13017 (l-t) Due from/investments in related parties, Cumulative Year-to-Date Activity + 13018 Long-term investments, Ending Balance + 13019 Long-term loans, Ending Balance

This ratio compares the investment earnings to the overall amount of investments and notes receivables.  An increase or decrease in this ratio may suggest unusual amounts of investment returns based on investment levels or an increase or decrease in investments or notes receivables.

IS & BS

Repairs and maintenance as a % of property, plant and equipment

(53016 Repairs, maintenance, and upgrades, Cumulative Year-to-Date Activity * 365 / Days in YTD period) / 13012 Building-related, Ending Balance + 13013 Capital-lease-related, Ending Balance + 13014 Other tangible capital assets, Ending Balance

This ratio compares the amount of repairs and maintenance to the overall amount of plant, property and maintenance.  An increase or decrease in this ratio may indicate unusual amounts being spent on repairs and maintenance or changes in the amounts of plant, property and equipment. 

IS & BS

Interest expense as a percentage of debt

53012 Interest and bank charge expense, Activity / -1 * (23003 Short-term debt, Ending Balance + 23005 (cur) Due to shareholders, directors, partners, members, Ending Balance + 23006 (cur) Due to/investments in related parties, Ending Balance + 23008 Long-term debt, Ending Balance +23010 (l-t) Due to shareholders, directors, partners, members, Ending Balance + 23011 (l-t) Due to/investments in related parties, Ending Balance + 23013 Subordinated debt, Ending Balance)

This ratio compares the level of interest expense to the overall level of debt in the same period.  Increases or decreases in this ratio could indicate sudden changes in the overall debt position of a company, such as quickly taking on more debt in a period or over time.

IS & BS

Days inventory on hand 

([13004 Inventories, Ending Balance +13004 Inventories, Opening Balance] / 2) * Days in YTD period / 52002 Direct costs, Cumulative Year-to-Date Activity

The days of inventory on hand is a measure of how quickly a business uses up the average inventory it keeps in stock. An increase or decrease in this ratio may indicate a business which is quickly consuming more inventory than expected or holding more inventory than expected. 

IS & BS

Days of compensation expense in expense accruals 

-1 * 24014 Compensation payable, Ending Balance / 53017 Operating labor expense, Average Daily Balance + 54012 Direct labor costs, Average Daily Balance

This value indicates the number of days that expenses have been accrued for.  A sharp increase or decrease in this value could suggest a business that’s not maintaining adequate levels of compensation related accruals or is holding an unusual amount of compensation related accruals. 

IS & BS

Going Concern

Working Capital

12002 Current assets Ending Balance + 22002 Current liabilities, Ending Balance / 1

Working capital can be a measure of liquidity, operational efficiency and short-term financial health. When current assets exceed current liabilities, and the ratio is positive, it can indicate a company has the potential to invest and grow. When current assets do not exceed current liabilities, and the ratio is negative, it may have trouble growing or paying back creditors.

BS

Debts to Assets

21000 Liabilities, Ending Balance * -1 / 11000 Assets, Ending Balance

This ratio indicates how much the business or assets are financed debt rather than by equity. The ratio can be used to evaluate if a company can pay a return on investment or to see how much debt a company already has on hand. A ratio above 1, indicates that a large portion of the assets are funded by debt or creditors. A ratio below 1, indicates that a greater portion of assets are funded by equity.

BS

Expenses to Net Sales

51000 Expenses, Activity / 41000 Revenue, Activity * -1

This ratio shows how efficient a company is when it comes to keeping its costs of operations low while generating sales. The smaller the ratio, the more it can be an indication of operational efficiency. A larger ratio indicates operational inefficiencies.

IS

Long-Term Debt to Net Working Capital

23008 Long-term debt, Ending Balance * -1 / (12002 Current assets, Ending Balance + 22002 Current liabilities Ending Balance)

This ratio measures the company's current ability to pay long-term obligations.

BS

Quick Ratio

(13002 Cash and cash-equivalent assets, Ending Balance + 13003 Accounts receivable, Ending Balance) / 22002 Current liabilities, Ending Balance * -1

This ratio is commonly used as an indicator of a company's short-term liquidity position as it measures its ability to meet its short term obligations. A ratio of 1 is typically considered normal and indicates that the company has exactly enough assets to pay off current liabilities, while a ratio below 1 indicates that the company might not have enough immediate liquidity to pay off current liabilities.

BS

Current Ratio

12002 Current assets, Ending Balance / 22002 Current liabilities, Ending Balance * -1

This ratio measures the company's ability to pay current obligations. A ratio below 1, often indicates that the company does not have the capital to meet its current obligations, while a ratio above 1 indicates that the company has the capital to remain solvent in the short term.

BS

Liquidity

Line of credit as a percentage of Accounts Receivables and Inventory 

-1 * 24030 Bank loans, Ending Balance / 13003 Accounts receivable, Ending Balance +13004 Inventories, Ending Balance

This ratio compares the current line of credit at the end of a period with the combination of accounts receivable total plus the total amount of inventory at the end of a period.  Increases or decreases in this ratio may indicate a business that has financed customer purchases or has financed current inventory in the given period.   

IS & BS

Profitability

Gross Profit Ratio

(-1 * 43002 Trade sales of goods, services, resources, Activity) - 52002 Direct costs, Activity / (-1 * 43002 Trade sales of goods, services, resources, Activity)

This ratio compares the gross profit in a period (profit that takes into account only revenue and expenses from making and selling product) to the net sales from the same period. Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross profit and total net sales revenue. It is a popular tool to evaluate the operational performance of the business.

IS

SG&A expense as a percentage of sales 

52003 Operating expenses, Activity - 53006 Amortization expense for intangible assets, Activity - 53007 Liability write-off expense, Activity - 53009 Amortization expense for natural resources, Activity - 53010 Amortization expense for tangible assets, Activity - 53022 Losses, Activity / (-1 * 43002 Trade sales of goods, services, resources, Activity)

This ratio compares the amount of sales supporting expenses in a period to the overall total sales in a period.  Increases or decreases in this ratio could indicate extraordinary spending in certain areas of the business, such as sales expenses that coincide with increases in sales in the same period.

IS