Category Archives: Bookkeeping

The days sales outstanding (DSO) measures the number of days on average it takes for a company to collect cash from customers that paid on credit. When you have a system to manage your working capital, you can stay ahead of issues like these. Calculating your business’s accounts receivable turnover ratio is one of the […]

If the ratio has been gradually declining, it may only be a matter of time before it falls below the recommended figure. Once you’ve calculated EBIT, you‘ll need to add back any depreciation or amortization expenses. For example, if your EBIT number is $60,000, and your depreciation expense is $4,000, the total you’ll use to […]