RATIOS AND MEASURES
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CALCULATIONS
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SURETY COMFORT RANGE
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Liquidity measures
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Number of Days Cash
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Cash + Equivalents x 360
Annual Revenue
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7 Days or More
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Accounts Receivable Turnover
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Accounts Receivable x 360
Annual Revenue
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60 Days or Less
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Accounts Payable Turnover
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Accounts Payable x 360
Cost of Earned Revenue
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45 Days or Less
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Current Ratio
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Current Assets
Current Liabilities
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Greater than 1.2
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Working Capital to Backlog
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Working Capital
Cost-to-Complete Backlog
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5% to 10% (or Greater)
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Net Worth Measures:
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Debt to Net Worth
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Total Debt
Net Worth
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2.1 to 3.1
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Fixed Assets to Net Worth
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Fixed Assets
Net Worth
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10% to 40%
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Net Worth to Backlog
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Net Worth
Cost-to-Complete Backlog
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5% to 10% (or Greater)
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Sales to Net Worth
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Annual Revenue
Net Worth
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10% or Greater
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Profitability Measures:
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Gross Profit to Sales
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Gross Profit
Annual Revenue
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5% to 10%
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Overhead to Sales
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General & Administrative Expenses
Annual Revenue
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5% to 10%
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Overhead to Net Worth
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General & Administrative Expenses
Net Worth
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60% or Less
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Net Profit Before Taxes to Sales
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Net Profit Before Taxes
Annual Revenue
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2% or Greater
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Return on Equity
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Net Profit Before Taxes
Net Worth of Prior Year
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15% or Greater
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