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Asset Turnover Ratio Calculator

Key in the Net Sales and Total Assets Values to the respective fields given below and then click Calculate to get the desired result.


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.

Net Sales:
Total sales less returns and bad debts.

Total Assets:
A balance sheet component - Total assets are the sum of all current and noncurrent assets that a company owns.

Average Total Assets:
An average of total assets value at the beginning of the year and total assets value at the end of the year.

Asset turnover ratio for a company with a net income of $500,000 and average total assets of $775,000 is 0.65:1. It means that for every dollar in assets, a company generates $0.65 in sales.

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