"There are many financial ratios that can help give a glimpse into a company's financial position. One common one is the working capital ratio, which is calculated by taking current assets divided by current liabilities. The ratio measures an entity's ability to pay off its short term liabilities with liquid and semi-liquid assets. Another ratio is days sales outstanding, which measures how many days of sales are sitting in accounts receivable. The higher the number of days, the worse off the company may be because they may not be collecting cash from customers in a timely fashion."