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The Accounting Ratio calculator provides numerous standard equations used in business accounting.

This calculator contains the equations found in vCalc/Equations/industry/accounting. The equations include:

**Best Possible Days Sales Outstanding**- gives useful insight into delinquencies, as it considers only Current Receivables.**Current Ratio**- A liquidity ratio that measures the ability to pay short-term liabilities.**Days Sales Outstanding**- tests the efficiency of the conversion of receivables into cash.**Debt to Equity Ratio**- measures how a company is leveraging its debt against the resources of its owners.**Inventory Turnover Ratio**- reveals how many times inventory turns over in a period**Net Cash Flow from Operations**- Net income - Increase in Receivables + Increase in Payables.**Quick Assets**- cash and assets that can be converted quickly to cash**Quick Ratio**(aka Acid Test) - measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash**Stockholder's Equity**- sum of Common Stock at Par, Premium on Common Stock, Preferred Stock at Par, Premium on Preferred Stock and Retained Earnings

Best Possible Days Sales Outstanding gives useful insight into delinquencies, as it considers only Current Receivables, those aged 30 days and less. The nearer the result is to standard DSO, the more effective a company is in dealing with slow payers. Typical days in period are 360 or 365.

A liquidity ratio that measures the ability to pay short-term liabilities.

Days Sales Outstanding tests the efficiency of the conversion of receivables into cash. A result greater than a company's Terms (ie, Terms net 30, but DSO of 45) reveals that, on average, credit customers are taking 15 days beyond term to pay. Typical days of period are 360 or 365.

The Debt to Equity Ratio measures how a company is leveraging its debt against the resources of its owners. A result greater than 1 means that creditors have more stake than owners.

The Inventory Turnover Ratio reveals how many times inventory turns over (is sold and replaced) in a period. Some definitions of Inventory Turnover use Net Sales instead of Cost of Goods Sold. Ratios that that trend lower should be investigated, they may reveal slow moving inventory.

Net Cash Flow from Operations = Net income - Increase in Receivables + Increase in Payables.

Net cash flow monitoring is a frequent activity of a healthy business.

Quick Assets are a subset of Current Assets, and include cash and assets that can be converted quickly to cash.

A liquidity ratio that measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash. Inventory, prepaid expenses, and other less liquid current assets should be omitted. Current Li

Also known as the accounting Acid Test.

Quick Ratio = (Cash + Marketable Securities + Receivables) / abilities

Stockholders' Equity is the sum of:

CS = Common Stock at Par

PCS = Premium on Common Stock

PS = Preferred Stock at Par

PPS = Premium on Preferred Stock

RE = Retained Earnings

Thanks to Kim McLamb for providing the library of equations.