# Finance calculators

## Leverage ratios

## Liquidity ratios

## Operating efficiency ratios

- Accounts payable days

(creditors days) - Accounts receivable days

(debtors days) - Inventory turnover

(stock turnover) - Asset turnover
- Operating expense margin
- Error rate ratio
- Earnings to sales ratio
- Materials to sales ratio
- Labour to sales ratio

## Profitability ratios

- Gross profit
- Gross profit margin
- Net profit
- Net profit margin
- Return on assets
- Return on equity
- Return on investment
- Break-even point
- Minimum sales requirement

## Non-financial ratios

#### Calculate gross profit

$$\text{Gross profit} = \text{Total revenue} - \text{Cost of goods sold}$$

#### Calculate gross profit margin

$$\text{Gross profit margin} = \frac{\text{Gross profit}}{\text{Total revenue}} \times 100$$

#### Calculate net profit

$$\text{Net profit} = \text{Total revenue} - (\text{Cost of goods sold} + \text{Operating expenses})$$

#### Calculate net profit margin

$$\text{Net profit margin} = \frac{\text{Net profit}}{\text{Total revenue}} \times 100$$

#### Calculate break-even point

$$\text{Break-even point} = \frac{\text{Fixed costs}}{\text{Gross profit margin}}$$

#### Calculate minimum sales requirement

$$\text{Minimum sales requirement} = \frac{\text{Fixed costs} + \text{Profit goal}}{\text{Gross profit margin}}$$

#### Calculate current ratio

$$\text{Current ratio} = \frac{\text{Current assets}}{\text{Current liabilities}}$$

#### Calculate quick ratio

$$\text{Quick ratio} = \frac{\text{Current assets} - \text{Inventory}}{\text{Current liabilities}}$$

#### Calculate return on assets

$$\text{Return on assets} = \frac{\text{Net profit}}{\text{Total assets}} \times 100$$

#### Calculate return on equity

$$\text{Return on equity} = \frac{\text{Net profit}}{\text{Owner's equity}} \times 100$$

#### Calculate return on investment

$$\text{Return on investment} = \frac{\text{Net profit}}{\text{Cost of investment}} \times 100$$

#### Calculate inventory turnover

Inventory turnover is also known as 'stock turnover'.

$$\text{Inventory turnover} = \frac{\text{Cost of goods sold}}{\text{Average inventory}}$$

#### Calculate accounts receivable days

Accounts receivable days are sometimes called 'debtor days'.

$$\text{Accounts receivable days} = \frac{\text{Accounts receivable}}{\text{Total credit sales}} \times 365 \text{ days}$$

#### Calculate accounts payable days

Accounts payable days are sometimes called 'creditor days'.

$$\text{Accounts payable days} = \frac{\text{Accounts payable}}{\text{Total purchases on account}} \times 365 \text{ days}$$

#### Calculate asset turnover ratio

$$\text{Asset turnover} = \frac{\text{Net revenue}}{\text{Total assets}}$$

#### Calculate debt ratio

$$\text{Debt ratio} = \frac{\text{Total liabilities}}{\text{Total assets}}$$

#### Calculate debt to equity ratio

$$\text{Debt to equity ratio} = \frac{\text{Total liabilities}}{\text{Owner's equity}}$$

#### Calculate interest coverage ratio

$$\text{Interest coverage ratio} = \frac{\text{Net profit}}{\text{Interest expenses}}$$

#### Calculate your earnings to sales ratio

$$\text{Earnings to sales ratio} = \frac{\text{Net profit}}{\text{Total sales}} \times 100$$

#### Calculate your error rate ratio

$$\text{Error rate ratio} = \frac{\text{Total items rejected}}{\text{Total items produced}} \times 100$$

#### Calculate your labour to sales ratio

$$\text{Labour to sales ratio} = \frac{\text{Cost of direct labour}}{\text{Sales}} \times 100$$

#### Calculate your materials to sales ratio

$$\text{Materials to sales ratio} = \frac{\text{Cost of direct materials}}{\text{Sales}} \times 100$$

#### Calculate your start-up costs

Monthly expenses | Projected monthly expenses | % of total |
---|---|---|

{{item.name}} | {{calculate_item_percent_of_total(item.cost)}} | |

Other monthly costs: | ||

{{calculate_item_percent_of_total(item.cost)}} | ||

Subtotal | {{calculate_total_monthly_expenses()}} | {{calculate_percentage_of_monthly_expenses()}} |

One-off costs | Projected one-off costs | % of total |
---|---|---|

{{item.name}} | {{calculate_item_percent_of_total(item.cost)}} | |

Other one off costs: | ||

{{calculate_item_percent_of_total(item.cost)}} | ||

Total estimated start-up capital | {{calculate_total_costs()}} | 100% |

- Last reviewed: 20 Dec 2021
- Last updated: 2 Feb 2023