Turnover Ratio Excel Template

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Let us take an example to calculate the Inventory Turnover Ratio. the given values are
Opening Inventory = $ 2,000, Purchases $ 16,000, Closing Inventory $ 6,000.
What is the Inventory Turnover Ratio?

Particulars Amount
Opening Inventory $2,000
Purchases $16,000
Closing Inventory $6,000

Cost of Goods Sold is calculated using the formula given below

Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory

Cost of Goods Sold $12,000

Average Inventory is calculated using the formula given below

Average Inventory = (Opening Inventory + Closing Inventory) / 2

Average Inventory $4,000

Inventory Turnover Ratio is calculated using the formula given below

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Inventory Turnover Ratio 3

Let us take another example of a company Mobility Inc. Whose revenue from operations or net sales for a period is $ 15,000
and its current assets and current liabilities for the period are $ 10,000 and $ 7,500 respectively.
What is the Working Capital Turnover ratio of the company?

Particulars Amount
Net Sales $15,000
Current Assets $10,000
Current Liabilities $7,500

Working Capital is calculated using the formula given below

Working Capital = Current Assets - Current Liabilities

Working Capital $2,500

Working Capital Turnover Ratio is calculated using the formula given below
Working Capital Turnover Ratio = Net Sales / Working Capital

Working Capita 6
sales for a period is $ 15,000
Let us take another example of a company which is having net credit sales worth $ 60,000 during one financial year.
At the beginning of the financial year Accounts Receivables were $ 2,500, and at the end accounts
receivables were $ 3,500. What are the Accounts receivable turnover ratio of the company?

Particulars Amount
Credit Sales $60,000
Opening Accounts Receivables $2,500
Closing Accounts Receivables $3,500

Average Accounts Receivables is calculated using the formula given below

Average Accounts Receivables = (Opening + Closing) / 2

Average Accounts Receivables $3,000

Accounts Receivable Turnover Ratio is calculated using the formula given below
Accounts Receivable Turnover Ratio = Credit Sales / Average Accounts Receivables

Accounts Receivable Turnover Ratio 20

s
during one financial year.
Let us take an example to calculate the Total Assets Turnover Ratio. The given values are 
Net Sales for the year = $ 15,000, Total assets at the beginning of the year = $ 11,500 and
Total assets at the end of the year = $ 12,000. What is the Total Assets Turnover Ratio?

Particulars Amount
Net Sales for the year $15,000
Total Opening Assets $11,500
Total Closing Assets $12,000

Average Total Assets is calculated using the formula given below

Average Total Assets = (Opening Total Assets + Closing Total Assets) / 2

Average Total Assets $11,750

Total Assets Turnover Ratio is calculated using the formula given below
Total Assets Turnover Ratio = Net Sales / Average Total Assets

Total Assets Turnover Ratio 1.28