Efficiency Ratios¶

Measures how effectively a company uses its assets to generate revenue.

Asset Utilisation¶

`asset_turnover`¶

asset_turnover(revenue, avg_total_assets) -> float | None

Formula: Revenue / Avg. Total Assets. Higher = more revenue per dollar of assets.

Note

Pass average assets for accuracy. If only one period is available, pass the ending balance.

`fixed_asset_turnover`¶

fixed_asset_turnover(revenue, avg_net_ppe) -> float | None

Formula: Revenue / Avg. Net PP&E

`equity_turnover`¶

equity_turnover(revenue, avg_total_equity) -> float | None

Formula: Revenue / Avg. Total Equity

Inventory¶

`inventory_turnover`¶

inventory_turnover(cogs, avg_inventory) -> float | None

Formula: COGS / Avg. Inventory. Higher = faster inventory turns.

Operating Leverage¶

`operating_leverage`¶

operating_leverage(pct_change_ebit, pct_change_revenue) -> float | None

Formula: % Change in EBIT / % Change in Revenue. DOL > 1 means profits amplify revenue moves.

`revenue_per_unit_cost`¶

revenue_per_unit_cost(revenue, total_opex) -> float | None

Formula: Revenue / Total Operating Expenses

TypeScript¶

import { assetTurnover, inventoryTurnover, operatingLeverage } from 'fin-ratios'

assetTurnover({ revenue: 300e9, avgTotalAssets: 310e9 })     // 0.97
inventoryTurnover({ cogs: 180e9, avgInventory: 6e9 })        // 30.0

Efficiency Ratios¶

Asset Utilisation¶

asset_turnover¶

fixed_asset_turnover¶

equity_turnover¶