Efficiency Ratios
Select a ratio:
Balance Sheet
as of January 31, 20X4
Assets
Liabilities
Equity
Balance Sheet
as of January 31, 20X5
Assets
Liabilities
Equity
Income Statement
for period January 31, 20X4 to January 31, 20X5
Asset
Turnover		 = RevenueAverage Total Assets =
$500
$400
+
$480
 2 		= 1.14
Inventory
Turnover		 = COGSAverage
Inventory		 =
$250
$50
+
$65
 2 		= 4.35
Days
Inventory		 = Average
Inventory COGS 		× 365 =
$50
+
$65
 2
$250
 		× 365 = 83.95
Accounts
Receivable
Turnover		 = RevenueAverage A/R =
$500
$50
+
$80
 2 		= 7.69
Days Sales
Outstanding		 = Average A/R Revenue × 365 =
$50
+
$80
 2
$500
 		× 365 = 47.45
Accounts
Payable
Turnover		 = COGSAverage A/P =
$250
$50
+
$100
 2 		= 3.33
Days Payable
Outstanding		 = Average A/P COGS × 365 =
$50
+
$100
 2
$250
 		× 365 = 109.50
ROA = Net Income Average Total Assets =  
$60
$400
+
$480
 2 		  = 13.64%
$500
$400
$480
$50
$65
$250
$50
$65
$250
$50
$80
$500
$50
$80
$500
$50
$100
$250
$50
$100
$250
$60
$400
$480