Asset Turnover Ratio Calculator

Calculate Asset Turnover Ratio



Formula

The formula to calculate the asset turnover ratio is:

\[ \text{AT} = \frac{\text{NS}}{\text{TA}} \]

Where:

What is Asset Turnover Ratio?

Asset turnover ratio is a financial term used to describe the ratio of net sales to total assets. This ratio measures the efficiency at which a company generates sales through its assets.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{AT} = \frac{500,000}{2,000,000} = 0.25 \]

The Asset Turnover Ratio is 0.25.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{AT} = \frac{1,000,000}{2,500,000} = 0.40 \]

The Asset Turnover Ratio is 0.40.