Net Operating Assets (NOA) Calculator

Formula

The formulas used in the calculations are:

$\text{Operating Assets} = \text{Cash} + \text{Accounts Receivable} + \text{Inventory} + \text{Prepaid Expenses} + \text{Fixed Assets}$

$\text{Operating Liabilities} = \text{Accounts Payable} + \text{Accrued Operating Expenses}$

$\text{Net Operating Assets (NOA)} = \text{Operating Assets} - \text{Operating Liabilities}$

Description

This calculator computes the Net Operating Assets (NOA) based on the input values of Cash, Accounts Receivable, Inventory, Prepaid Expenses, Fixed Assets, Accounts Payable, and Accrued Operating Expenses. Net Operating Assets represent the assets required for the day-to-day operations of the business minus the liabilities arising from those operations.

Example Calculation

Let's assume the following:

Cash: $250,000
Accounts Receivable: $200,000
Inventory: $400,000
Prepaid Expenses: $100,000
Fixed Assets: $1,000,000
Accounts Payable: $450,000
Accrued Operating Expenses: $1,200,000

Calculate the Operating Assets:

$\text{Operating Assets} = 250,000 + 200,000 + 400,000 + 100,000 + 1,000,000 = 1,950,000$

Calculate the Operating Liabilities:

$\text{Operating Liabilities} = 450,000 + 1,200,000 = 1,650,000$

Calculate the Net Operating Assets (NOA):

$\text{Net Operating Assets (NOA)} = 1,950,000 - 1,650,000 = 300,000$

Therefore, the Net Operating Assets (NOA) is $300,000.