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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Asset Turnover

Asset turnover is a financial ratio that measures the efficiency of a company in regard to use of its assets in generating sales revenue or sales income to the company.

Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio due mainly to cutthroat and competitive pricing.

Assets Turnover can be calculated by dividing net sales to total asset.Sales is the value of Net Sales or Sales from the company income statement. Average Total Assets is the average of the values of Total assets from the company balance sheet in the beginning and the end of the fiscal period.

S A

Here S = Net Sales and A = Total Asset

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