𧎠Ratio Analysis & Formulas
The mathematical foundation driving the live analytics dashboard. These metrics are dynamically calculated directly from the live SQL ledger.
Liquidity: Current Ratio
Formula: Current Assets / Current Liabilities
Measures the company’s ability to pay short-term obligations or those due within one year.
Liquidity: Quick Ratio (Acid Test)
Formula: (Current Assets – Inventory) / Current Liabilities
A stricter measure of liquidity that strips out inventory, which may take time to liquidate.
Solvency: Debt to Equity
Formula: Total Liabilities / Total Shareholders Equity
Measures the degree to which a company is financing its operations through debt versus wholly-owned funds.
Operational: Days in Inventory
Formula: (Average Inventory / Cost of Goods Sold) Ã 365
Measures how long it takes a company to turn its inventory into sales.
Profitability: Gross Profit Margin
Formula: (Gross Profit / Revenue) Ã 100
Indicates the financial health of core operations before overheads are deducted.