# All Inventory-calculators Formulas List

## Inflation Rate

#### Formula :

Purchasing Power = Amount of money x (CPI (this year) / CPI (last year))
Inflation Rate = CPI (this year) - CPI (last year) / CPI (last year) x 100

## Ending Inventory

Formula :
Ending Inventory = (Beginning Inventory + Net Purchases) - (Cost of goods sold)

## Inventory Turnover Ratio

Formula :
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Inventory Turnover = Cost of goods sold / Average Inventory

## Days in Inventory (DII)

Formula :
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Days in Inventory = 365 × Average Inventory / Cost of goods sold

## Inventory Shrinkage Percentage

#### Formula :

Booked (Invoiced) Inventory = (Starting Inventory + Purchases) - (Sales + Adjustments)
Shrinkage = Booked Inventory - Physical Counted Inventory
Shrinkage Percent = (Shrinkage / Booked Inventory) × 100

## Total Inventory Cost

Formula :
TIC = C (Q/2) + F (D/Q)

Where,

C=Carrying cost per unit per year
Q=Quantity of each order
F=Fixed cost per order
D=Demand in units per year

## EBITDA

#### Formula:

EBITDA = Revenue - Expenses

Note:
Expenses (Excluding tax, interest, depreciation, and amortization)

## EBITDA Margin

#### Formula:

EBITDA Margin= (EBIT + Depreciation + Amortization) / Total Revenue

## Accounting Rate of Return (ARR)

#### Formula:

Depreciation = (Initial Investment - Final Investment) / No. of Years
Profit = (Incremental Revenue - Incremental Expenses) / Depreciation
ARR = Profit / Initial Investment

## Current Ratio

#### Formula:

Current Assets = a + b + c + d + e
Current Liabilities = u + v + w
Liquidity Current Ratio = Current Assets / Current Liabilities

Where,

a = Cash and Cash Equivalents
b = Short-term Investments
c = Net Receivables
d = Inventory
e = Other Current Assets
u = Accounts Payable
v = Short-term Debt
w = Other Current Liabilities

## High-Low Variable Cost

#### Formula:

b = (Y2 - Y1) / (X2 - X1)
T = Y2 - (b × X2) = Y1 - (b × X1)
y = T + (b × X)

Where,

b = Variable Cost per Unit
Y2 = High Cost
Y1 = Low Cost
X2 = High Unit
X1 = Low Unit
T = Total Fixed Cost
y = Cost Volume

## Exponential Growth

#### Formula:

P(t) = Poert

Where,

P(t) = Final Value at Time t
Po = Initial Value at Time t = 0
r = Growth Rate / Period
t = Time (No. of Periods)

## Average Total Cost

#### Formula:

Total Cost = Fixed Cost + Variable Cost
Average Total Cost = Total Cost / Output

## Days In Inventory using Inventory Turnover

#### Formula:

Days in Inventory (DII) = 365 / Inventory Turnover

## PEG Ratio

#### Formula:

PEG Ratio = P / I

Where,

P = Price per Earnings
I = Annual Earning Per Share Growth

## Defensive Interval Ratio

#### Formula:

Interval Measure = Current Assets / Average Daily Operating Costs

## Cash Flow To Creditors

#### Formula:

Cash Flow to Creditors= I - E + B

Where,

I = Interest Paid
E = Ending Long Term Debt
B = Beginning Long Term Debt

## Net Cash Flow To Creditors

#### Formula:

C = I - N

Where,

C = Cash Flow to Creditors
I = Interest Paid
N = Net New Borrowing

## Marginal Cost

#### Formula:

Marginal cost (M) = Change in total cost / Change in quantity of output

## Inflation Rate

#### Formula :

Purchasing Power = Amount of money x (CPI (this year) / CPI (last year))
Inflation Rate = CPI (this year) - CPI (last year) / CPI (last year) x 100

## Days Sales Outstanding

#### Formula:

DSO = (Accounts Receivable / Annual Revenue) x Number of Days in the Year

Where,

DSO = Days Sales Outstanding

## Total Annual Inventory Cost

#### Formula:

TC = (D x C) + ((Q / 2) x H) + ((D / Q) x S)

Where,

TC = Total Annual Inventory cost
D = Demand
C = Cost Per Unit
Q = Order Quantity
S = Cost of Planning Order/Setup Cost
H = Annual Holding and Storage Cost Per Unit of Inventory

## Cost of Goods Available For Sale

#### Formula:

s = b + p

Where,

s = COG Available for Sale
b = Beginning Inventory
p = Cost of Goods Purchased

## OCF

#### Formula:

Operating Cash Flow = ( Sales - Costs) × ( 1 -Tax Rate/100 ) + ( Depreciation × Tax Rate/100)