Inventory Days Calculator

Inventory represents the total of raw materials, work in process, and finished goods that a business holds for the purpose of resale.

Inventory days is calculated using the inventory days formula and shows the average number of days sales a business is holding in stock.

The Excel inventory days calculator, available for download below, calculates the inventory days by entering details of cost of sales, number of days in the accounting period, and the inventory balance.

Read more

Days Payable Outstanding Calculator

Accounts payable represent amounts owed by a business for goods purchased on account from its suppliers.

Days payable outstanding is calculated using the days payable outstanding formula and shows the average number of days the business is taking to pays its suppliers for purchases on account.

The Excel days payable outstanding calculator, available for download below, calculates the days payable outstanding by entering details of cost of sales, number of days in the accounting period, and the accounts payable balance.

Read more

Days Sales Outstanding Calculator

Accounts receivable represent amounts owed to a business for goods sold on account to customers.

Days sales outstanding (dso) is calculated using the days sales outstanding formula and shows the average number of days the customers are taking to pay the business for sales made to them on account.

The Excel days sales outstanding (dso) calculator, available for download below, calculates the days of sales outstanding by entering details of sales, number of days in the accounting period, and the accounts receivables balance.

Read more

Altman Z Score Calculator

The Z score Altman model takes five key accounting ratios for a business, and using the Altman Z score formula weights them according to an industry type, and combines them into a single score (the Z score) to give an indication of the financial health of a business.

Read more

Break Even Calculator

The Excel break even analysis calculator, available for download below, allows for up to four different options or scenarios to be considered at a time.

For each option, the unit selling price and cost price are entered and the gross margin and gross margin percentage are calculated. By entering a value for the fixed costs of the business, the break even revenue and the break even units are calculated.

Read more

PE Multiple Valuation

The PE multiple valuation or PE ratio valuation technique can be used to provide a rough valuation of the equity of a business based on its earnings after interest, tax and depreciation.

The price earnings ratio calculation formula is given a follows:

Read more

Financial Ratios Formulas

Financial ratios are used to analyse business trends and measure performance of both the business and the management. Our Financial Projections Template provides key financial ratios. The financial ratios formulas chart below acts as a quick reference to help you find information about the most important ratios used in managing a business.

Financial ratios are a relative measure of two or more values taken from the financial statements of a business and can be expressed as a decimal value such as 0.55 or as a percentage e.g. 55%.

Read more

Return on Investment Calculator

This return on investment calculator template will help you in calculating return on investment, exit multiple, and compound annual growth rate, for use in your business plan.

If you are seeking funding for your business by way of investment, it is likely that you will need to include an estimate of the return on investment an investor can expect to make from their investment in your business plan. Investors use the return on investment calculation to compare several different investments in deciding whether to invest or not.

Read more

Return on Investment

If you are seeking funding for your business by way of investment, it is likely that you will need to include an estimate of the return on investment an investor can expect to make from their investment in your business plan. Investors use the return on investment calculation to compare several different investments in deciding whether to invest or not.

Different investors will use different methods to calculate their return on investment, various techniques exist, the main ones of which are described below.

Read more

Gross Margin Calculator

Each product or service within your business has a gross margin, which is the difference between the selling price and the cost price of the product. The gross margin is used to calculate the gross margin percentage.

This gross margin calculator will help you to estimate the gross margin percentage of your product for use in the Financial Projections Template.

The Excel sheet, available for download below, helps a business calculate the gross margin percentage for its products by entering the cost components and selling price of the product. It also calculates the markup percentage of the product.

Read more

Activity Ratios Calculator

Activity ratios are used to measure the ability of a business to convert different balance sheet accounts such as inventory, accounts receivable, and accounts payable into cash or revenue, and the managements ability to control the resources of the business.

This activity ratios calculator will help you to estimate the accounts receivable days, inventory days, and accounts payable days of your business for use in the Financial Projections Template.

Read more