Check inventory turnover, asset turnover, receivables turnover, collection days, and equity multiplier from statement inputs.
$600,000 COGS / $100,000 average inventory
Operations ratios need period matching, seasonality, inventory method, stockout risk, credit policy, bad-debt risk, and industry context before anyone treats them as strong or weak.
Recent operations ratio checks will appear here.
Operations ratio checks stay in this tab. They do not judge accounting quality, stockout risk, credit policy, seasonality, cash flow, or business value.
Inputs and recent answers stay in this browser tab and are not sent to a server.
See how quickly inventory turns over.
Estimate how efficiently assets generate sales.
Measure receivables turnover and average collection period.
Review operating ratios before looking at profit and debt ratios.
6x inventory turnover, 1.90x asset turnover, 8.75x receivables turnover, and 41.71 collection days
11.11x receivables turnover and about 32.85 collection days
3.90x inventory turnover before checking stock levels and demand
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Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it when you want to test the exact inputs on this page: See how quickly inventory turns over. Estimate how efficiently assets generate sales. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
Cost of goods sold and inventory means the cost of inventory sold and the beginning and ending inventory values used for inventory turnover. Net sales and average assets means sales and asset base used to estimate asset turnover. Net credit sales and receivables means credit-based sales compared with average accounts receivable for collection speed. Total assets and equity means balance sheet totals used for the equity multiplier.
In plain language: The calculator averages beginning and ending inventory, divides cost of goods sold by average inventory, divides net sales by average assets, divides credit sales by average receivables, converts receivables turnover into collection days, and divides assets by equity for equity multiplier. Use cost of goods sold and sales from the same period. Use beginning and ending inventory from the period edges, average assets for the same period, and average receivables that match the credit-sales period.
Inventory turnover shows how often inventory sold and was replaced. Asset turnover shows sales per dollar of assets. Receivables turnover and collection days show how quickly credit sales turn into cash. Equity multiplier shows how much assets sit on each dollar of equity.
This is a statement-ratio check. It does not adjust for seasonality, inventory accounting method, stockouts, credit-policy changes, bad debts, one-time sales, customer mix, receivable quality, leases, or financial-statement restatements. Use full financial statements, footnotes, cash-flow reports, inventory notes, credit policy, customer aging reports, and industry comparisons before judging whether operations are strong or weak.
Double-check whether sales means net sales or net credit sales in the field you are filling. Then check that inventory, receivables, assets, and equity come from matching statement periods.
Inventory is a balance sheet number at one date, while cost of goods sold covers a period. Averaging beginning and ending inventory gives the turnover ratio a fairer base than using only one snapshot.
Average collection period estimates how many days it takes to collect receivables. It uses 365 divided by receivables turnover, so it is a broad timing estimate, not a guarantee for each customer.
A business can hold extra inventory before a busy season or collect receivables after a large billing cycle. One snapshot can look weak or strong just because of timing.
Yes. High turnover can mean inventory is moving fast, but it can also mean stock is too low and customers may not find what they need. Read the ratio with stockout risk, demand, and supplier timing.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.