Asset Turnover Ratio Calculator - Glossary:Using our asset turnover ratio calculator, helps to compare, measure, understand the overall health of the business.
Asset Turnover Ratio:Shows the proportion of Net Sales to its Average Total Assets. In simple words, it measures the efficiency of a company’s ability to use its asset to generate sales.
How to calculate?Formula: Asset Turnover Ratio = Net Sales/Average Total Assets.
The values are commonly stated against total assets in the balance and net sales in the income statement.
Average Total Assets = (Beginning Total Assets + Ending Total Assets)/2.