Insert the information in the form and the calculator will determine the asset turnover.

What is the asset turnover?

The asset turnover ratio is the ratio between the value of the firm's sales and the value of it's assets. It is an indicator of the efficiency of the comapany in using it's assets to generate revenue.

How to calculate asset turnover?

To calculate asset turnover you should use the following formula:
asset turnover ratio = net sales / average total assets
where:
average total assets = (assets at start of year + assets at end of year) / 2

example: company x has $8,300,000 in net sales an it also has $3,900,000 worth of total assets, calculate the asset turnover?

Using the asset turnover formula the asnwer will be:

asset turnover ratio = net sales / average total assets
asset turnover ratio = $8,300,000 / $3,900,000
asset turnover ratio = 2.12

Why use asset turnover?

The asset turnover ratio is used to indicate the efficiency of the company in using it's assets to generate revenue. High asset turnover ratio means that the company is efficient in generating revenue from it's assets.