Days Sales Outstanding Formula DSO Formula can be calculated by dividing the account receivable by the net credit sales and multiply it by the number of days in the period. Often this formula is used at the end of the year due to which number of days 365 and in the equation form it can […]
Debt Service Coverage Ratio Formula (DSCR) is calculated by dividing the net operating income by the total debt service cost. Debt Service Coverage Ratio = Operating Income/Total debt service cost Operating Income is the income which leftover after the payment of all the operating expenses. Operating income is also called EBIT. On the income statement, […]
Account Receivable Turnover Ratio Formula is used to measure the efficiency of the company to collect the credit from its customers. Some companies collect the account receivable in a short time such as in 90 days. While some companies collect credit from customers within 6 months. Account Receivable Turnover Ratio Formula also uses to measure the […]
Investors use mostly Accumulated Depreciation to Fixed Assets Ratio Formula to find the productiveness of the invested capital of the company infixed assets. If the result of this ratio is low it means that the fixed assets of the company have plenty of life left and maybe use for years to come. If the result given […]
Asset Coverage Ratio Formula used by the investors and analysts to find the capital management, financial stability, and overall riskiness of the company. If the result of the formula is high then the company’s assets drastically outnumber liabilities which is good for the investors. Asset Coverage Ratio Formula can be calculated by subtracting the current […]