Basic Earnings Power Ratio Calculator

✖Operating Income is a measure of a company's profitability from its core business operations.ⓘ Operating Income [OI]			+10% -10%
✖Total Assets include all the assets owned by the company, both tangible and intangible.ⓘ Total Assets [TA]			+10% -10%

✖Basic Earnings Power Ratio provides a simple and straightforward way to assess a company's operating performance without the impact of interest expenses and taxes.ⓘ Basic Earnings Power Ratio [BEPR]

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Formula

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Basic Earnings Power Ratio

Formula

`"BEPR" = "OI"/"TA"`

Example

`"0.917031"="420000"/"458000"`

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Basic Earnings Power Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Basic Earnings Power Ratio = Operating Income/Total Assets
BEPR = OI/TA
This formula uses 3 Variables

Variables Used

Basic Earnings Power Ratio - Basic Earnings Power Ratio provides a simple and straightforward way to assess a company's operating performance without the impact of interest expenses and taxes.
Operating Income - Operating Income is a measure of a company's profitability from its core business operations.
Total Assets - Total Assets include all the assets owned by the company, both tangible and intangible.

STEP 1: Convert Input(s) to Base Unit

Operating Income: 420000 --> No Conversion Required
Total Assets: 458000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

BEPR = OI/TA --> 420000/458000

Evaluating ... ...

BEPR = 0.91703056768559

STEP 3: Convert Result to Output's Unit

0.91703056768559 --> No Conversion Required

FINAL ANSWER

0.91703056768559 ≈ 0.917031 <-- Basic Earnings Power Ratio

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

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Seller's Discretionary Earnings

Go Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses

Amortization of Intangible Assets

Go Amortization Expense = (Historical Cost of Intangible Asset-Residual Value)/Useful Life Assumption

Cash Available for Distribution

Go Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures

Residual Income

Go Residual Income = Operating Income-Minimum Required Rate of Return*Average Operating Assets

Net Capital Spending

Go Net Capital Spending = Ending Net Fixed Assets-Beginning Net Fixed Assets+Depreciation

Capital Structure

Go Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight

Allowance Method of Doubtful Accounts

Go Net Accounts Receivables = Gross Accounts Receivables-Allowance for Doubtful Accounts

Operating Working Capital

Go Operating Working Capital = Operating Current Assets-Operating Current Liabilities

Inventory Write-Down

Go Inventory Write Down = Historical Cost-Lower of Cost or Net Realizable Value

Net Realizable Value

Go Lower of Cost or Net Realizable Value = Expected Sale Price-Disposal Costs

Net Identifiable Assets

Go Net Identifiable Assets = Identifiable Assets-Total Liabilities

Expense Ratio

Go Expense Ratio = Annual Operating Expenses/Average Fund Assets

Inventory Days

Go Inventory Days = (Average Inventory/Cost Of Goods Sold)*365

Basic Earnings Power Ratio

Go Basic Earnings Power Ratio = Operating Income/Total Assets

Internal Growth Rate

Go Internal Growth Rate = Retention Ratio*Return on Assets

Depreciable Cost of Asset

Go Depreciable Cost = Purchase Cost-Salvage Value

Conversion Price

Go Conversion Price = Par Value/Conversion Ratio

Basic Earnings Power Ratio Formula

Basic Earnings Power Ratio = Operating Income/Total Assets
BEPR = OI/TA

What is Basic Earnongs Power Ratio?

Basic Earnings Power Ratio focuses on the relationship between a company's operating earnings and its total assets, providing insights into how effectively the company is utilizing its assets to generate operating profits.
Key points to consider about the Basic Earnings Power Ratio:
Simplicity: The BEPR is a simple and easy-to-calculate metric that provides a basic measure of operating performance.
Asset Utilization: A higher BEPR indicates that the company is more efficient at generating operating earnings from its assets, suggesting better asset utilization.
Comparison: The BEPR can be used to compare the operating performance of different companies within the same industry or to track a company's performance over time.
Limitations: Since the BEPR does not consider the effects of financial leverage and taxes, it may not provide a complete picture of a company's overall profitability or financial health. It's often used in conjunction with other financial metrics for a more comprehensive analysis.

How to Calculate Basic Earnings Power Ratio?

Basic Earnings Power Ratio calculator uses Basic Earnings Power Ratio = Operating Income/Total Assets to calculate the Basic Earnings Power Ratio, The Basic Earnings Power Ratio determines the efficiency at which a company utilizes its assets to produce operating income (EBIT). Basic Earnings Power Ratio is denoted by BEPR symbol.

How to calculate Basic Earnings Power Ratio using this online calculator? To use this online calculator for Basic Earnings Power Ratio, enter Operating Income (OI) & Total Assets (TA) and hit the calculate button. Here is how the Basic Earnings Power Ratio calculation can be explained with given input values -> 0.917031 = 420000/458000.

FAQ

What is Basic Earnings Power Ratio?

The Basic Earnings Power Ratio determines the efficiency at which a company utilizes its assets to produce operating income (EBIT) and is represented as BEPR = OI/TA or Basic Earnings Power Ratio = Operating Income/Total Assets. Operating Income is a measure of a company's profitability from its core business operations & Total Assets include all the assets owned by the company, both tangible and intangible.

How to calculate Basic Earnings Power Ratio?

The Basic Earnings Power Ratio determines the efficiency at which a company utilizes its assets to produce operating income (EBIT) is calculated using Basic Earnings Power Ratio = Operating Income/Total Assets. To calculate Basic Earnings Power Ratio, you need Operating Income (OI) & Total Assets (TA). With our tool, you need to enter the respective value for Operating Income & Total Assets and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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