Net Operating Assets Calculator

Your details

Cash held for day-to-day operations. Exclude excess cash or short-term financial investments, which are non-operating.
Amounts owed by customers for goods or services already delivered.
Raw materials, work-in-progress, and finished goods held for sale.
Costs paid in advance that will be expensed in future periods (e.g. insurance, rent).
Property, plant and equipment net of accumulated depreciation. These are used directly in operations.
Any other assets tied to core operations - for example operating lease right-of-use assets, intangibles used in production, etc.
Amounts owed to suppliers for goods and services received but not yet paid.
Wages payable, utilities payable, and other expenses incurred but not yet paid that relate to operations.
Cash received from customers before the related product or service is delivered. This is an operating liability.
Any other operating liabilities not captured above, such as warranty provisions or operating lease obligations.
Net operating profit after tax. Used to calculate RNOA and NOA Turnover. Leave at 0 to skip return metrics.
Total net revenue for the period. Used to compute NOA Turnover (Revenue / NOA). Leave at 0 to skip.
Currency
Net operating assets (NOA)Strong returns
$470,000

Operating assets minus operating liabilities - the capital deployed in core operations

Total operating assets$580,000
Total operating liabilities$110,000
Return on NOA (RNOA)20.21%
NOA Turnover1.28x
Net operating margin0.16%
Operating Assets$580,000
Operating Liabilities$110,000
Net Operating Assets$470,000
20.21% %
Weak<5%Below avg5%-10%Adequate10%-20%Strong20%+

Net Operating Assets: $470.0K

  • Operating assets of $580.0K minus operating liabilities of $110.0K gives NOA of $470.0K.
  • RNOA of 20.2% is strong - the business generates more than $0.20 of operating profit for every $1 of operating capital deployed.
  • NOA Turnover of 1.28x means the business generates 1.28 dollars of revenue per dollar of net operating assets. Higher turnover means the capital base is being used more efficiently.
  • Net operating margin is 15.8%, which combined with the asset turnover, drives the overall RNOA (RNOA = margin x turnover).

Next stepCompare RNOA against your weighted average cost of capital (WACC). Value is created only when RNOA exceeds the cost of the capital used to fund those operating assets.

 = Powered by OnlyCalculators