A formula library used in Accounting Lab across the three subscription levels
Each level builds on the previous one — intermediate includes beginner ratios, advanced includes everything.
Measure the entity's ability to meet its short-term obligations.
Measure the entity's efficiency in managing and moving inventory.
Measure success in collecting debts from customers.
Measure the entity's ability to generate profits relative to sales.
Measure reliance on debt to finance assets.
Measure ability to meet obligations in the most stringent conditions and shortest timeframes.
Used in industrial companies to monitor production flow.
Focus on time as much as money — analyzing the temporal relationship between purchasing, selling, and collection.
Isolate operating performance from financial performance.
Measure asset utilization efficiency and ability of profits to protect financing structure.
Focus on efficiency of utilizing equity and invested capital.
Measure whether the company generates profits exceeding its cost of capital.
Evaluate real liquidity from operations and the ability to self-expand without external financing.
Measure sensitivity of profits to changes in sales volume or fixed costs.
Every ratio above is embedded in Accounting Lab scenarios — no memorization, real application.