Activity Ratio Formula Excel Template

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Let us take Apple Inc.’s example to calculate the of various activity ratios based on its annual report for the year 2019. Durin
the company booked revenue of $260,174 million against the cost of sales of $161,782 million. The accounts receivable, tot
net fixed assets, and inventories stood at $23,186 million, $365,725 million, $41,304 million and $3,956 million respectively
beginning of the year. On the other hand, accounts receivable, total assets, net fixed assets, and inventories stood at
$22,926 million, $338,516 million, $37,378 million and $4,106 million respectively at the end of the year.
Calculate the following activity ratios for Apple Inc:

Particulars Amount (in millions)

Revenue $260,174
Cost of Sales $161,782
Opening Accounts Receivable $23,186
Closing Accounts Receivable $22,926
Opening Inventories $3,956
Closing Inventories $4,106
Opening Total Assets $365,725
Closing Total Assets $338,516
Opening Net Fixed Assets $41,304
Closing Net Fixed Assets $37,378
Average Receivables $23,056
Average Inventories $4,031
Average Total Assets $352,121
Average Net Fixed Assets $39,341

Accounts Receivable Turnover Ratio is calculated using the formula given below
Accounts Receivable Turnover Ratio = 2 * Revenue / (Opening Accounts Receivable +
Closing Accounts Receivable)

Accounts Receivable Turnover

Ratio 11.28

Merchandisze Inventory Turnover Ratio is calculated using the formula given below
Merchandize Inventory Turnover Ratio = 2 * Cost of Sales / (Opening Inventories +
Closing Inventories)

Merchandisze Inventory
Turnover Ratio 40.13

Total Asset Turnover Ratio is calculated using the formula given below
Total Asset Turnover Ratio = 2 * Revenue / (Opening Total Assets +
Closing Total Assets)

Total Asset Turnover Ratio 0.74

Net Fixed Asset Turnover Ratio is calculated using the formula given below
Net Fixed Asset Turnover Ratio = 2 * Revenue / (Opening Net Fixed Assets +
Closing Net Fixed Assets)

Net Fixed Asset Turnover Ratio 6.61

al report for the year 2019. During the year,
on. The accounts receivable, total assets,
n and $3,956 million respectively at the
, and inventories stood at
d of the year.