Efficiency Excel Template

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Let us take the example of Apple Inc.’s annual report for the year 2018 to illustrate the
concept of efficiency formula. Calculate the efficiency ratios for the year 2018
based on the below-given information.

Particulars Amount (in millions)

Net Sales $265,595
Cost of Sales $163,756
Opening Net Fixed Assets $33,783
Closing Net Fixed Assets $41,304
Opening Accounts Receivable $17,874
Closing Accounts Receivable $23,186
Opening Inventory $4,855
Closing Inventory $3,956
Opening Accounts Payable $44,242
Closing Accounts Payable $55,888

Average Net Fixed Assets is calculated using the formula given below
Average Net Fixed Assets = (Opening Net Fixed Asset + Closing Net Fixed Asset) / 2

Average Net Fixed $37,543.5

Average Accounts Receivable is calculated using the formula given below

Average Accounts Receivable = (Opening Accounts Receivable + Closing Accounts Receivable) / 2

Average Accounts Receivable $20,530

Average Inventory is calculated using the formula given below

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

Average Inventory $4,405.5

Average Accounts Payable is calculated using the formula given below

Average Accounts Payable = (Opening Accounts Payable + Closing Accounts Payable) / 2

Average Accounts Payable $50,065

Fixed Asset Turnover is calculated using the formula given below

Fixed Asset Turnover = Net Sales / Average Net Fixed Assets

Fixed Asset Turnover 7.07

Accounts Receivable Turnover is calculated using the formula given below

Accounts Receivable Turnover = Net Sales / Average Accounts Receivable

Accounts Receivable Turnover 12.94

Inventory Turnover Ratio is calculated using the formula given below
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Inventory Turnover Ratio 37.17

Accounts Payable Turnover is calculated using the formula given below

Accounts Payable Turnover = Cost of Goods Sold / Average Accounts Payable

Accounts Payable Turnover 3.27