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.
The Excel sheet, available for download below, helps a business calculate the activity ratios by entering values for revenue, gross margin, overheads, accounts receivable, inventory, and accounts payable.
Activity Ratios Calculator Download
The activity ratios calculator is available for download in Excel format by following the link below.
Users use this accounting template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an accounting format that you might use. It is purely illustrative. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the template, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.