Days sales outstanding

1102 Trade Receivables, Calculated, Ending Balance * Days in YTD period / (-1 * 4100 Operating Revenue, Cumulative YTD 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 * 2101 Trade payables and accrued liabilities, Ending balance) * Days in YTD period / 5100 Cost of goods and services sold, Cumulative YTD 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 * 2101 Trade payables and accrued liabilities, Opening Balance) / 1101 Cash and cash equivalents, 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

1101 Cash and cash equivalents, Debit Amount / (-1 * 4000 Income 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

(All L3 Contra Operating Revenue accounts, Activity) / (-1 * [All Operating Revenue accounts, Activity])

Note: Contra Operating Revenue MAC codes: 4111 to 4120.

Operating Revenue MAC codes: 4101 to 4110.

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

5215 Bad debt expense, Activity / 1102 Trade receivables, 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

Allowance for doubtful accounts to receivables 

-1 * 1103 Allowance for doubtful accounts (contra), Calculated Ending Balance / 1102 Trade receivables, Calculated 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

5301 Tax expense (benefit), Activity / -1 * (4000 Revenue, Activity + 5000 Expenses, Activity - 5301 Tax expense (benefit), 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

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

5210 Repairs, maintenance, and upgrades expense, Cumulative YTD Activity * 365 / Days in YTD period / 1116 Property, plant and equipment (PP&E), Calculated Ending Balance + 1113 Lease and right-of-use assets, Calculated 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

5217 Interest expense and bank charges, Activity / -1 * (2302 Debt and borrowings, Calculated 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 

([1106 Inventory—general, Calculated Ending Balance + 1107 Inventory—materials and supplies, Opening Balance + 1108 Inventory—work in progress, Opening balance + 1109 Inventory—manufactured finished goods, Opening balance + 1110 Inventory—purchased finished goods, Opening balance + 1111 Inventory reserve (contra), Opening balance] / 2) * Days in YTD period / 5100 Cost of goods and services sold, Cumulative YTD 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 * 2103 Payroll liabilities, Calculated Ending Balance / 5201 Employee-related expense (wages, benefits, etc.), Average Daily Balance + 5103 COGS—cost of delivering services, 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

Working Capital

1101 Cash and cash equivalents, Ending balance + 1102 Trade receivables, Ending balance + 1103 Allowance for doubtful accounts (contra), Ending balance + 1104 Contract assets, Ending balance + 1105 Contract assets—allowance for impairment (contra), Ending balance + 1106 Inventory—general, Ending balance + 1107 Inventory—materials and supplies, Ending balance + 1108 Inventory—work in progressEnding balance + 1109 Inventory—manufactured finished goods, Ending balance + 1110 Inventory—purchased finished goods, Ending balance + 1111 Inventory reserve (contra), Ending balance + 1112 Deferred costs and prepaid expenses, Ending balance + 1201 Current tax assets, Ending balance + 2101 Trade payables and accrued liabilities, Ending balance + 2102 Contract liabilities, Ending balance + 2103 Payroll liabilities, Ending balance + 2104 Deferred revenue, Ending balance + 2201 Current tax liabilities, Ending balance + 2301 Interest and dividends payable, Ending balance + 2303 Bank deposit liabilities (banking entities), Ending balance + 2304 Bank overdraft, Ending balance + 2305 Credit card loans, Ending balance + 2306 Cheques and other items in transit, 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

2000 Liabilities, Calculated Ending Balance * -1 / 1000 Assets, Calculated 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

5200 Operating expenses, Activity / 4100 Operating 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

Quick Ratio

(1101 Cash and cash equivalents, Calculated Ending Balance + 1102 Trade receivables, Calculated Ending Balance + 1103 Allowance for doubtful accounts (contra), Ending balance) / 1201 Current tax assets, Ending balance + 2101 Trade payables and accrued liabilities, Ending balance + 2102 Contract liabilities, Ending balance + 2103 Payroll liabilities, Ending balance + 2104 Deferred revenue, Ending balance + 2201 Current tax liabilities, Ending balance + 2301 Interest and dividends payable, Ending balance + 2303 Bank deposit liabilities (banking entities), Ending balance + 2304 Bank overdraft, Ending balance + 2305 Credit card loans, Ending balance + 2306 Cheques and other items in transit, Ending balance

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

1101 Cash and cash equivalents, Ending balance + 1102 Trade receivables, Ending balance + 1103 Allowance for doubtful accounts (contra), Ending balance + 1104 Contract assets, Ending balance + 1105 Contract assets— allowance for impairment (contra), Ending balance + 1106 Inventory—general, Ending balance + 1107 Inventory—materials and supplies, Ending balance + 1108 Inventory—work in progress, Ending balance + 1109 Inventory—manufactured finished goods, Ending balance + 1110 Inventory—purchased finished goods, Ending balance + 1111 Inventory reserve (contra), Ending balance + 1112 Deferred costs and prepaid expenses, Ending balance / 2101 Trade payables and accrued liabilities, Ending balance + 2102 Contract liabilities, Ending balance + 2103 Payroll liabilities, Ending balance + 2104 Deferred revenue, Ending balance + 2201 Current tax liabilities, Ending balance + 2301 Interest and dividends payable, Ending balance + 2303 Bank deposit liabilities (banking entities), Ending balance + 2304 Bank overdraft, Ending balance + 2305 Credit card loans, Ending balance + 2306 Cheques and other items in transit, 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

Gross Profit Ratio

(-1 * 4100 Operating revenue, Activity) - 5100 Cost of goods and services sold, Activity / (-1 * 4100 Operating revenue, 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 

5200 Operating expenses, Activity - 5203 Research and development costs, Activity - 5214 Restructuring and impairment costs, Activity - 5217 Interest expense and bank charges, Activity - 5218 Fundraising expense, Activity / (-1 * 4100 Operating revenue, 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