Every ratio below is worked by hand from invented figures. The page calculator is limited to payment arithmetic for a fixed-rate amount over a set number of months, with total interest and total repaid alongside. Real rates appear only in a funding partner's offer.
Working capital turnover ratio, worked by hand for a Fort Morgan, CO plumbing and heating contractor
Working capital means what the business holds in current assets after current liabilities are taken out. The turnover ratio divides a year's net sales by the average working capital over that year, showing how many dollars of sales each dollar of working capital supported.
| Line | Invented figure | How it is found |
|---|---|---|
| Net sales for the year | $1,396,740 | Income statement |
| Working capital at the start of the year | $162,410 | Last year's balance sheet |
| Working capital at year end | $175,570 | $412,350 current assets minus $236,780 current liabilities |
| Average working capital | $168,990 | Start plus end, divided by two |
| Turnover ratio | 8.27 | Net sales divided by average working capital |
In the invented case, each dollar of working capital supported about $8.27 of sales. A rising ratio can mean the contractor runs lean; a ratio that climbs while cash falls can mean the cushion for payroll and parts is getting thin.
The cash ratio on a Morgan County, CO insurance agency's year-end books
Of the common liquidity measures, the cash ratio is the narrowest: it sets cash and cash equivalents against current liabilities. It leaves out receivables and stock entirely.
Invented figures: an insurance agency ends the year with $92,735 in cash against $57,915 of current liabilities, an invented cash ratio of 1.60. With no stock on the books, the agency's acid-test ratio is close to its current ratio; the cash ratio is lower by whatever commissions the agency is still owed.
ZIP Code Business Patterns counted 24 finance and insurance establishments with employees at ZIP 80701 addresses in 2023; 66.7% of them had fewer than five employees.
Stock turnover for a Fort Morgan, CO building supply dealer, from cost of goods sold to days on the shelf
Stock turnover divides the cost of goods sold by the average inventory. Dividing 365 by the result gives the average days an item sits before it sells.
| Line | Invented figure | How it is found |
|---|---|---|
| Cost of goods sold for the year | $979,615 | Income statement |
| Inventory at the start and end of the year | $241,560 and $228,940 | Balance sheets |
| Average inventory | $235,250 | Start plus end, divided by two |
| Stock turnover | 4.16 | Cost of goods sold divided by average inventory |
| Days on the shelf | 87.7 | 365 divided by the turnover |
An invented dealer turning its stock 4.16 times a year holds an item for about 87.7 days. A partner may weigh that figure when it decides how much of a stock order to fund; the inventory financing page works invented stock cases from a supply dealer's order to a used car lot.
What the payment calculator on this page does with a Morgan County, CO working capital amount
Three inputs drive the payment calculator here: the amount, the yearly interest rate in percent, and the number of months. What comes back is the estimated monthly payment along with total interest and the total repaid. It does not compute any of the ratios above, and it adds no fees.
Worked by hand for comparison, an invented $24,385 at 15.65% a year comes to $2,208.44 a month over 12 months, with $2,116.28 of invented interest. Stretching the same invented amount to 18 months lowers the payment to $1,528.72 and raises the interest to $3,131.96.
| Months | Rate (annual %) | Monthly payment | Total interest | Total repaid |
|---|---|---|---|---|
| 12 | 15.65 | $2,208.44 | $2,116.28 | $26,501.28 |
| 18 | 15.65 | $1,528.72 | $3,131.96 | $27,516.96 |
A contractor whose turnover ratio is high and cash ratio is low can use those payments to judge how much a working capital loan could add to monthly costs.
By Millfield Business Capital · Updated