For the management Cost of Goods Sold (COGS) Formula is very important because by using this formula management realize how well purchasing and payroll cost are being controlled. For the calculation of the gross margin investors and creditors also … [Continue reading] about Cost of Goods Sold (COGS) Formula

## Current Ratio Formula

Current Ratio Formula used by the investors to find the liquidity of the company and analyze how efficiently a company can pay off its current obligations. If the result calculated by this formula is high it means that the company can easily make … [Continue reading] about Current Ratio Formula

## Days Payable Outstanding Formula

Days Payable Outstanding Formula can be calculated by dividing the account payable by the derivation of cost of sale and the average number of days outstanding. Equation of Days Payable Outstanding Formula is Days Payable Outstanding = [Account … [Continue reading] about Days Payable Outstanding Formula

## Days Sales in Inventory Formula

Days Sales in Inventory Formula is mostly used by the investors and creditors to measure the value, liquidity, and cash flows of the inventory. Days Sales in Inventory Formula can be calculated by dividing the ending inventory by cost of goods … [Continue reading] about Days Sales in Inventory Formula

## Days Sales Outstanding Formula | DSO Formula

Days Sales Outstanding Formula | DSO Formula can be calculated by dividing the account receivable by the net credit sales and multiply it by the number of days in the period. Often this formula is used at the end of the year due to which number of … [Continue reading] about Days Sales Outstanding Formula | DSO Formula