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Operations Ratios Calculator

Operations Ratio Calculator
 
A
B
Cost of Goods Sold:
Inventory:
Sales:
Total Assets:
Accounts Receivable:
Sales:
for Reporting Period
Shareholder Equity:
Answer:
Inputs:
A
B
Change
Cost of Goods Sold
0
0
Inventory
0
0
Sales
0
0
Total Assets
0
0
Accounts Receivable
0
0
Annual Sales
0
0
Shareholder Equity
0
0
 
 
 
 
Results:
A
B
Change
Inventory Turnover
0
0
Total Asset Turnover
0
0
Average Collection Period
0
0
Equity Multiplier
0
0

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Calculator Use

This calculator will find solutions for up to four measures of the operations of a business or organization - inventory turnover, total asset turnover, average collection period, and equity multiplier. The calculator can calculate one or two sets of data points, and will only give results for those ratios that can be calculated based on the inputs provided by the user.

  • If you are analyzing one company over a single reporting period, fill in the known data points in column A and press calculate - the results will display below.
  • If you are analyzing two companies or a single company over two reporting periods, use both column A (primary) and B (secondary). For each data point and ratio that has a value in both columns, the change expressed as a percent increase or decrease will also be calculated.

The significant figures drop select box only determines rounding for the ratios themselves. Percent changes are always calculated to four significant figures.

Calculations Used in this Calculator

  • Inventory Turnover = cost of goods sold ÷ inventory
  • Total Asset Turnover = sales ÷ total assets
  • Average Collection Period = accounts receivable ÷ (sales for reporting period ÷ reporting period length in days)
  • Equity Multiplier = total assets ÷ shareholders' equity

Input Definitions

Cost of Goods Sold
Total of all expenses incurred in order to produce the product(s) being sold. Includes materials, labor/ manufacturing costs, licensing fees, etc...
Inventory
Total value of all unsold product.
Sales
Gross revenue for all products sold, does not factor in any expenses.
Accounts Receivable
Amounts owed to a company from customers who purchased a product or service on credit or a financing aggreement.
Sales for Reporting Period
Sales over a specified period. By default, the reporting period is 365 days (one year), but this can be adjusted for companies with non-standard fiscal year lengths e.g.- seasonal businesses that completely cease operations in the off-season.
Shareholder's Equity
Amount invested by shareholders into the company.

Ratio Definitions

Inventory Turnover
Measures the liquidity of a company's inventory.
Total Asset Turnover
Measures the efficancy of a company in using it's total assets.
Average Collection Period
The mean amount of time for a company to collect it's accounts recieivable, a measure of their credit and collections policies.
Equity Multiplier
Measures the portion of total assets purchased through equity.

Further Reading



 

Cite this content, page or calculator as:

Furey, Edward "Operations Ratios Calculator"; from http://www.calculatorsoup.com - Online Calculator Resource.

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