Net Operating Assets Calculator
Calculate NOA to analyze operational efficiency and asset utilization
Calculate Net Operating Assets
Operating Assets
Cash and cash equivalents
Money owed by customers
Raw materials, WIP, finished goods
Expenses paid in advance
Property, plant, equipment (PPE)
Operating Liabilities
Money owed to suppliers
Unpaid operating expenses
NOA Calculation Results
NOA Formula
NOA = Operating Assets - Operating Liabilities
NOA = $0 - $0 = $0
Performance Analysis
Example Calculation
Company Alpha Example
Operating Assets:
• Cash: $250,000
• Accounts Receivable: $200,000
• Inventory: $400,000
• Prepaid Expenses: $100,000
• Fixed Assets: $1,000,000
Total: $1,950,000
Operating Liabilities:
• Accounts Payable: $450,000
• Accrued Operating Expenses: $1,200,000
Total: $1,650,000
NOA Calculation
NOA = Operating Assets - Operating Liabilities
NOA = $1,950,000 - $1,650,000
NOA = $300,000
NOA Ratio = 15.4% (Good operational efficiency)
NOA Analysis Guidelines
Strong (>30% ratio)
Excellent operational efficiency with strong asset utilization.
Good (15-30% ratio)
Healthy operational position with balanced asset-liability structure.
Moderate (5-15% ratio)
Modest efficiency; room for operational improvement.
Poor (<5% or negative)
Low efficiency or operational challenges requiring attention.
NOA Tips
Higher NOA indicates better operational efficiency
Compare NOA across similar companies in the industry
Negative NOA may signal liquidity concerns
NOA focuses on core operations, excluding financial assets
Understanding Net Operating Assets (NOA)
What are Net Operating Assets?
Net Operating Assets (NOA) represent the difference between a company's revenue-generating assets and the liabilities directly related to operations. This metric provides insight into operational efficiency by focusing on core business activities.
Why is NOA Important?
- •Analyzes operational performance and efficiency
- •Excludes financial engineering effects
- •Enables comparison across different capital structures
- •Focuses on core earnings and operations
NOA Calculation Steps
Step 1: Calculate Operating Assets
Operating Assets = Cash + Accounts Receivable + Inventory + Prepaid Expenses + Fixed Assets
Step 2: Calculate Operating Liabilities
Operating Liabilities = Accounts Payable + Accrued Operating Expenses
Step 3: Calculate NOA
NOA = Operating Assets - Operating Liabilities
Operating Assets Include:
- •Cash: Operating cash and equivalents
- •Accounts Receivable: Money owed by customers
- •Inventory: Raw materials, WIP, finished goods
- •Prepaid Expenses: Expenses paid in advance
- •Fixed Assets: Property, plant, and equipment
Operating Liabilities Include:
- •Accounts Payable: Money owed to suppliers
- •Accrued Operating Expenses: Unpaid operating expenses
Key Insights:
ROA (Operating)
Operating Income ÷ NOA. Shows return generated by operating assets.