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Operations Ratios Calculator

Our Operations Ratios Calculator permits the capabilities of accurateness. With our user-friendly operating ratio calculator, you can easily analyze the efficiency and profitability of your business. The NJ CPA USA Operations Ratios Calculator enables you to make data-driven decisions with ease. Get valuable insights into your operational performance at a glance. Improve your financial strategy today with our Operations Ratios Calculator.

How to Use This Calculator?

Enter Your Data: If you are analyzing a single company for one reporting period, input your data in column A and click “Calculate” to generate instant results below.

Compare Companies or Periods: For comparing two companies or analyzing a single company over two reporting periods, utilize both column A (primary) and column B (secondary). Our calculator automatically calculates the percentage change for each data point and ratio, clearly indicating increases or decreases.

Within our Operations Ratios Calculator, you can input data for the following key sections:

  • Cost of Goods Sold: Enter your cost of goods sold to evaluate its impact on your operational efficiency.
  • Inventory: Input your inventory figures to assess inventory turnover and management effectiveness.
  • Sales: Enter your sales data to analyze revenue generation and sales performance.
  • Total Assets: Input your total assets to evaluate asset utilization and efficiency.
  • Accounts Receivable: Enter accounts receivable figures to assess liquidity and collection efficiency.

Operations Ratios Calculator

A B
Results A B Change
Inventory Turnover
Total Asset Turnover
Average Collection Period
Equity Multiplier
  • Sales for Reporting Period: Input sales data for the reporting period to gauge revenue performance.
  • Shareholder Equity: Enter shareholder equity figures to assess company solvency and financial health.
  • Reporting Period in Days: Input the duration of the reporting period in days for accurate analysis.

Operations Ratios Calculator Formula Used in This calculator

Our Operations Ratios Calculator simplifies financial analysis by using precise formulas to evaluate business efficiency. Below is the key operating ratio formula used in this calculator:
Operating Ratio Formula:

Operating Ratio =

(
Operating Expenses
Net Sales
)  × 100
Additional Formula:

Cost of Goods Sold (COGS) Ratio:

COGS Ratio =

(
Cost of Goods Sold
Net Sales
)  × 100

Inventory Turnover Ratio:

Inventory Turnover Ratio =

Cost of Goods Sold
Average Inventory

Accounts Receivable Turnover Ratio:

Accounts Receivable Turnover Ratio =

Net Sales
Average Accounts Receivable

Asset Turnover Ratio:

Asset Turnover Ratio =

Net Sales
Total Assets

Return on Equity (ROE):

ROE =

(
Net Income
Shareholder Equity
)  × 100

Days Sales Outstanding (DSO):

DSO =

(
Accounts Receivable
Net Sales
)  × Number of Days in Period
These formulas help you comprehensively evaluate and compare the operational performance of your business.

Why Use Our Operating Ratio Calculator?

This indispensable tool allows you to probe deeply into your financial data, revealing clear insights into operational efficiency and profitability. Whether you are evaluating a single reporting period or comparing multiple periods or companies, our calculator’s streamlined, user-friendly interface simplifies complex calculations. 

With accurate ratios and percentage change indicators, you can make data-driven decisions that propel business growth and success—NJ CPA USA’s Operating Ratio Calculator takes your financial analysis and strategy to the next level.