Below is a list of the most commonly used formulas for our ERP Balance Sheet Analyzers:

Formula Name	Calculation
Accounts Receivable Turnover measures the average number of days that accounts receivables are outstanding.	(365*accounts receivable) / average net sales on account = average # of days
Inventory Turnover measures the speed with which materials are converted into sales of finished goods	average cost of goods sold/average inventory = inventory turnover
Return on Sales measures the profit earned per dollar of sales.	net profit after taxes / sales = return on sales
Quick Ratio (Acid Test Ratio) measures the dollars of liquid assets available to cover each dollar of current debt.	current assets / current liabilities=quick ratio
Current Ratio measures the ability to meet current obligations. Note this analysis should only be used during periods of relative income stability.	total current assets / current liabilities= current ratio
Current Liabilities to Inventory indicates how much reliance is placed on funds from unsold inventories to satisfy debt obligations.	total current liabilities / inventory= ratio

Keep in mind that you are not limited to just the formulas we provide.  If you have a specific calculation that you would like to use, you can add it! This can be set up in program GLHM.

Program GLHB is used to calculate the ratios for the formulas defined in program GLHM. Numerators and denominators must be defined in order for accurate calculations to be made. You can calculate the ratio for the selected ratio type for a single year and period or calculate the ratio for all the ratio types for the year and period entered.

To learn more about how to use these Balance Sheet analyzers or to see all 17 formulas, go to: http://www.ndsapps.com/webhelp/glhb.htm