Operating Ratio Calculator used to evaluate how efficiently a business manages its resources:
🔹 Inventory Turnover Ratio
Measures how quickly a company sells and replaces its inventory over a period. A high ratio indicates efficient inventory management.
🔹 Total Asset Turnover Ratio
Measures how efficiently a company uses all its assets to generate sales. It's a broad indicator of operational efficiency.
🔹 The Average Collection Period is an operations ratio that measures the average number of days a company takes to collect payments from its customers after a sale has been made on credit.
🔹 The Equity Multiplier is a financial leverage ratio that indicates how much of a company’s assets are financed by shareholders' equity versus debt.
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