Asset Turnover Ratio formula

Asset Turnover = 2Beginning Assets + Ending Assets. ​. Total Sales. ​. where: Total Sales = Annual sales total Beginning Assets = Assets at start of year Ending Assets = Assets at end of year. ​. . The asset turnover ratio uses the value of a company’s assets in the denominator of the formula. To determine the value of a company’s assets, …

The fixed asset turnover ratio is a ratio that measures how efficiently a company is generating net sales from its fixed-asset investments. This efficiency ratio compares net sales to fixed assets and measures a company’s ability to generate net sales from its fixed-asset investments.

What is the Asset Turnover Ratio? The asset turnover ratio, also known as the total asset turnover ratio, measures the efficiency with which a company uses its assets to produce sales. Sales Revenue Sales revenue is the income received by a company from its sales of goods or the provision of services.

Asset Turnover Ratio formula