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