Library of Financial Calculations

Library of Financial Calculations

- Days Cash on Hand

Create Data Mash Calculation with this Formula: (Total Bank Accounts / (( Total Expenses - Depreciation - Amortization ) / 365)) Definition: Days cash on hand is the number of days that an...

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By PATH by Simplex Support Team

updated 4 months ago

- EBITDA

Create Data Mash Calculation with this Formula: (Net Income + Interest Paid + Taxes Paid + Depreciation + Amortization) Definition: EBITDA, or earnings before interest, taxes, depreciation, and...

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By PATH by Simplex Support Team

updated 7 months ago

- Debt to Equity Ratio

Create Data Mash Calculation with this Formula: Total Liabilities / Total Equity Definition: The debt to equity ratio measures the riskiness of a company's financial structure by comparing its...

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By PATH by Simplex Support Team

updated 7 months ago

- Profits First Calculation

What is Profit First? Profit First is a system ( and a great book! ) from small business finance expert Mike Michalowicz. Profit First is based on the idea that we need to allocate our income and...

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By PATH by Simplex Support Team

updated 7 months ago

- Accounts Payable Days (AP Days)

Create Data Mash Calculation with this Formula: (Total Accounts Receivable / Total Income) * 365 Definition: The accounts payable days formula measures the number of days that a company takes to...

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By PATH by Simplex Support Team

updated 7 months ago

- Accounts Receivable Days (AR Days)

Create Data Mash Calculation with this Formula: (Total Accounts Receivable / Annual Revenue) * 365 Definition: Accounts receivable days is the number of days that a customer invoice is...

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By PATH by Simplex Support Team

updated 7 months ago

- Mis-Matched Financing

Overview: “Mis-Matched Financing” occurs when the supply of finance does not meet demand. One of the main reasons for this capital market imperfection is information asymmetries between...

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By PATH by Simplex Support Team

updated 7 months ago

CASH LEAK OVERVIEW MAP

Question: Where is cash leaking from your company? Definition: In reality, cash leakages occur when amounts of money are borrowed from banks but not re-deposited. Leakages also occur in the form...

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By PATH by Simplex Support Team

updated 7 months ago

Leak 1: Potential Sales

Create Data Mash Calculation with this Formula: (TOTAL ASSETS * Target Asset Turnover) - Total Income Definition: Sales leakage is the corrosion of revenue and profit and it has many tentacles that...

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By PATH by Simplex Support Team

updated 7 months ago

Leak 2: Slow Collection on Invoices

Create Data Mash Calculation with this Formula: (Sales / Target AR Turnover Rate) - Actual Accounts Receivable Overview: The last thing most entrepreneurs want is for their hard-earned dollars to...

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By PATH by Simplex Support Team

updated 7 months ago

Leak 3: Covering Accounts Payables Too Quickly

Create Data Mash Calculation with this Formula: (AP or COGS / Target AP Turnover Rate) - Actual Accounts Payable Overview: With the advent of smarter spend management systems, a lot of companies...

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By PATH by Simplex Support Team

updated 7 months ago

Leak 4: Potential Gross Profit from COGS

Create Data Mash Calculation with this Formula: (Sales – Cost of Goods Sold) Definition: Profit leakage is a loss of profits due to the difference between actual prices and prices on invoices....

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By PATH by Simplex Support Team

updated 7 months ago

Leak 5: Potential Inventory Issues

Create Data Mash Calculation with this Formula: (COGS / Target Inventory Turnover ) - Actual Inventory What is Inventory Shrinkage? Inventory shrinkage is the excess amount of inventory listed...

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By PATH by Simplex Support Team

updated 7 months ago

Leak 6: Net Profits

Create Data Mash Calculation with this Formula: (Total Income * Target Net Profit %) - Actual Net Profit How much net profit should you be earning if you reached your target? As long as your gross...

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By PATH by Simplex Support Team

updated 7 months ago

- Net Cash Flow

Definition: Net cash flow is the amount of cash generated or lost over a specific period of time, usually over one or more reporting periods . This concept is used to discern the short-term...

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By PATH by Simplex Support Team

updated 7 months ago

- Net Profit Return on Assets (ROA)

Create Data Mash Calculation with this Formula: Net Income / Total Assets Definition: The return on assets compares the net earnings of a business to its total assets. It provides an estimate of...

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By PATH by Simplex Support Team

updated 7 months ago

- Inventory Days

Create Data Mash Calculation with this Formula: (Inventory / Total Cost of Goods Sold) * 365 Definition: Days inventory outstanding measures the average number of days required for a business to...

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By PATH by Simplex Support Team

updated 7 months ago

- Working Capital Requirement - with Inventory

Create Data Mash Calculation with this Formula: (Inventory Days + AR Days - AP Days) * Average Daily COGS Definition: Based on your current operation and its cash conversion cycle, you will need...

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By PATH by Simplex Support Team

updated 7 months ago

- EBITDA

Create Data Mash Calculation with this Formula: (Net Income + Interest Paid + Taxes Paid + Depreciation + Amortization) Definition: EBITDA, or earnings before interest, taxes, depreciation, and...

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By PATH by Simplex Support Team

updated 7 months ago

- Return On Investment (ROI)

Create Data Mash Calculation with this Formula: Net Profit / Total Equity Definition: Return on investment measures the ability of an investment to generate income . The ratio is used to compare...

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By PATH by Simplex Support Team

updated 7 months ago

- Days Cash on Hand

Create Data Mash Calculation with this Formula: (Total Bank Accounts / (( Total Expenses - Depreciation - Amortization ) / 365)) Definition: Days cash on hand is the number of days that an...

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By PATH by Simplex Support Team

updated 7 months ago

- Long Term Debt Availability

Create Data Mash Calculation with this Formula: (Net Income + Interest Paid + Taxes Paid + Depreciation + Amortization) * 3.00 - Notes Payable Definition: Long-term debt is debt that matures in...

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By PATH by Simplex Support Team

updated 7 months ago

- Net Profit Margin

Create Data Mash Calculation with this Formula: (Net Income / Total Income) * 100 Definition: Net sales are total revenue , less the cost of sales returns , allowances , and discounts . This is...

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By PATH by Simplex Support Team

updated 7 months ago

- Gross Profit Margin

Create Data Mash Calculation with this Formula: (Gross Profit / Total Income) * 100 Definition: The gross margin ratio is the proportion of each sales dollar remaining after a seller has...

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By PATH by Simplex Support Team

updated 7 months ago

- Working Capital Requirement

Create Data Mash Calculation with this Formula: Current Assets – Current Liabilities Definition: Working Capital Requirement is the amount of money needed to finance the gap between disbursements...

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By PATH by Simplex Support Team

updated 7 months ago

- Operating Cash Shortage

Create Data Mash Calculation with this Formula: Working Capital - Working Capital Requirement Definition: Operating cash flow is the net amount of cash that an organization generates from its ...

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By PATH by Simplex Support Team

updated 7 months ago

- Customer Concentration

Create Data Mash Calculation with this Formula: Total Customer Transactions per period / Total Revenue per period Summary: Will losing a customer significantly harm your company? In order to have...

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By PATH by Simplex Support Team

updated 7 months ago

- Current Ratio

Create Data Mash Calculation with this Formula: Total Current Assets / Total Current Liabilities Definition: Current ratio analysis is used to determine the liquidity of a business. The results...

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By PATH by Simplex Support Team

updated 7 months ago

- Debt to Equity Ratio

Create Data Mash Calculation with this Formula: Total Liabilities / Total Equity Definition: The debt to equity ratio measures the riskiness of a company's financial structure by comparing its...

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By PATH by Simplex Support Team

updated 7 months ago

- Sales to Assets Ratio

Create Data Mash Calculation with this Formula: Total Income / TOTAL ASSETS Definition: The sales to total assets ratio measures the ability of a business to generate sales on as small a base...

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By PATH by Simplex Support Team

updated 7 months ago

- Quick Ratio

Create Data Mash Calculation with this Formula: (Total Bank Accounts + Accounts receivable (A/R)) / Total Current Liabilities Definition: Test of a company's ability to pay debt without selling...

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By PATH by Simplex Support Team

updated 7 months ago

- Debt Service Coverage Ratio (DSCR)

Create Data Mash Calculation with this Formula: (Net Income + Tax Exempt Interest + Taxes Paid + Depreciation + Amortization) / ((Total Long-Term Liabilities / 5.00) + Interest Earned) Definition:...

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By PATH by Simplex Support Team

updated 7 months ago