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We have prepared this total asset turnover calculator for you to calculate the total asset turnover ratio. The total asset turnover ratio tells you how much revenue a company can generate given its asset base. This ratio indicates a company's efficiency at generating sales.
Total Asset Turnover is a financial ratio that measures the efficiency of a company’s use of its assets in generating revenue to the company. It is calculated as net sales divided by total assets. Total Asset Turnover Formula
The formula is: Asset Turnover Ratio = Net Sales / Average Total Assets. Net sales is the total amount of revenue retained by a company. It is the gross sales from a specific period...
Total Asset Turnover = Net Sales / Total Assets. Total Asset Turnover is a financial ratio that measures how efficiently a company uses its assets to generate revenue. It is a key indicator of a company’s operating efficiency and financial performance. The formula for Total Asset Turnover is simple and straightforward.
How to Calculate Asset Turnover Ratio. The asset turnover ratio is calculated by dividing the net sales of a company by the average balance of the total assets belonging to the company. Net Sales The gross sales of a company deducted by discounts, allowances, and returns.
Enter the total assets and asset turnover ratio to calculate the sales revenue. The advanced version of this calculator allows you to project the asset turnover ratio based on expected sales growth. Click the “Calculate” button to see the projected asset turnover ratio.
Definition – What is Total Asset Turnover? Total Asset Turnover is the ratio of sales to total assets. Formula – How to calculate Total Asset Turnover. Total Asset Turnover = Sales / Total Assets. Example. A company has sales of $12,000 and average total assets of $5,200. Total Asset Turnover = $12,000 / $5,200 = 2.31
How to calculate asset turnover. A company’s asset turnover is calculated by taking revenues during a period and dividing that by the company’s average total assets. Asset Turnover Ratio Formula = Revenues / Average Total Assets.
The Asset Turnover Ratio (AT) is calculated by dividing the Total Net Sales Revenue (NS) by the Total Assets Value (TA): \ [ AT = \frac {NS} {TA} \] Example Calculation. For a business with a Total Net Sales Revenue of $100,000 and Total Assets valued at $500,000, the Asset Turnover Ratio would be: \ [ AT = \frac {100,000} {500,000} = 0.2 \]
Using the Asset Turnover Ratio Calculator involves these steps: Input : Enter the company’s net sales and the average total assets over the desired period into the calculator. Calculation : The calculator applies the formula to calculate the Asset Turnover Ratio.