Lifo Reserve Calculator

✖Fifo Inventory Value refers to the value of a company's inventory calculated using the Fifo method.ⓘ Fifo Inventory Value [FIV]			+10% -10%
✖Lifo Inventory Value refers to the value of a company's inventory calculated using the Lifo method.ⓘ Lifo Inventory Value [LV]			+10% -10%

✖Lifo Reserve represents the difference between the inventory valuation under the last-in, first-out method, and the first-in, first-out method.ⓘ Lifo Reserve [LIFOR]

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Formula

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Lifo Reserve

Formula

`"LIFOR" = "FIV"-"LV"`

Example

`"85"="195"-"110"`

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Lifo Reserve Solution

STEP 0: Pre-Calculation Summary

Formula Used

Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value
LIFOR = FIV-LV
This formula uses 3 Variables

Variables Used

Lifo Reserve - Lifo Reserve represents the difference between the inventory valuation under the last-in, first-out method, and the first-in, first-out method.
Fifo Inventory Value - Fifo Inventory Value refers to the value of a company's inventory calculated using the Fifo method.
Lifo Inventory Value - Lifo Inventory Value refers to the value of a company's inventory calculated using the Lifo method.

STEP 1: Convert Input(s) to Base Unit

Fifo Inventory Value: 195 --> No Conversion Required
Lifo Inventory Value: 110 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

LIFOR = FIV-LV --> 195-110

Evaluating ... ...

LIFOR = 85

STEP 3: Convert Result to Output's Unit

85 --> No Conversion Required

FINAL ANSWER

85 <-- Lifo Reserve

(Calculation completed in 00.004 seconds)

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Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 100+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 50+ more calculators!

< 9 Financial Modeling and Valuation Calculators

Fifo Cost of Goods Sold

Go Fifo Cost of Goods Sold = Lifo Cost of Goods Sold-(Ending Lifo Reserve-Beginning Lifo Reserve)

Return on Common Equity

Go Return on Common Equity = (Net Income-Preferred Dividends)/Average Common Equity

Fifo Retained Earnings

Go Fifo Retained Earnings = Lifo Retained Earnings+Lifo Reserve*(1-Tax Saving)

Fifo Net Income

Go Fifo Net Income = Lifo Net Income+Change in Lifo Reserve*(1-Tax Saving)

Lifo Reserve

Go Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value

Segment Debt Ratio

Go Segment Debt Ratio = Segment Liabilities/Segment Assets

Segment Turnover

Go Segment Turnover = Segment Revenue/Segment Assets

Segment Margin

Go Segment Margin = Segment Profit/Segment Revenue

Segment Roa

Go Segment Roa = Segment Profit/Segment Assets

Lifo Reserve Formula

Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value
LIFOR = FIV-LV

What is Lifo Reserve ?

Lifo Reserve helps stakeholders understand the impact of using the LIFO method on a company's financial statements. The LIFO reserve helps stakeholders understand the impact of using the LIFO method on a company's financial statements. Fifo assumes that the oldest inventory items are sold first. The remaining inventory consists of the most recently purchased items. Lifo assumes that the newest inventory items are sold first. The remaining inventory consists of the oldest items. The LIFO reserve allows analysts and investors to adjust financial statements for better comparability between companies using different inventory valuation methods. It helps in assessing the true value of inventory and the impact on the cost of goods sold. By understanding the LIFO reserve, stakeholders can get a clearer picture of a company's profitability and operational efficiency. Adjustments using the LIFO reserve can provide a more accurate comparison of gross profit margins.

How to Calculate Lifo Reserve?

Lifo Reserve calculator uses Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value to calculate the Lifo Reserve, Lifo Reserve is an accounting measure that represents the difference between the inventory valuation under the Fifo method and the Lifo method. Lifo Reserve is denoted by LIFOR symbol.

How to calculate Lifo Reserve using this online calculator? To use this online calculator for Lifo Reserve, enter Fifo Inventory Value (FIV) & Lifo Inventory Value (LV) and hit the calculate button. Here is how the Lifo Reserve calculation can be explained with given input values -> 85 = 195-110.

FAQ

What is Lifo Reserve?

Lifo Reserve is an accounting measure that represents the difference between the inventory valuation under the Fifo method and the Lifo method and is represented as LIFOR = FIV-LV or Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value. Fifo Inventory Value refers to the value of a company's inventory calculated using the Fifo method & Lifo Inventory Value refers to the value of a company's inventory calculated using the Lifo method.

How to calculate Lifo Reserve?

Lifo Reserve is an accounting measure that represents the difference between the inventory valuation under the Fifo method and the Lifo method is calculated using Lifo Reserve = Fifo Inventory Value-Lifo Inventory Value. To calculate Lifo Reserve, you need Fifo Inventory Value (FIV) & Lifo Inventory Value (LV). With our tool, you need to enter the respective value for Fifo Inventory Value & Lifo Inventory Value 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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