Free Asset Turnover Calculator
Calculate the asset turnover ratio to evaluate how efficiently a company uses its assets to generate revenue.
Asset Turnover Ratio
1.33
Asset Turnover Ratio vs Net Revenue
How to Calculate Asset Turnover
Formula
Asset Turnover = Net Revenue / Average Total Assets
Average Total Assets = (Beginning Assets + Ending Assets) / 2
This efficiency ratio shows how many dollars of revenue each dollar of assets produces. Higher values indicate the company squeezes more revenue out of its asset base. Asset-light businesses like software firms typically have high turnover, while capital-heavy manufacturers tend to report lower figures.
Example Calculation
A company earned $1,200,000 in net revenue. Total assets were $800,000 at the start and $1,000,000 at the end of the year.
- 01Average Total Assets = ($800,000 + $1,000,000) / 2 = $900,000
- 02Asset Turnover = $1,200,000 / $900,000 = 1.33
- 03Each dollar of assets generated $1.33 in revenue.
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