How it Works
Sales divided by (Start+End Assets)/2.
What is Asset Turnover Ratio?
Revenue / Average Assets. Shows how well assets generate sales.
Step-by-Step Guide
- Revenue: Total Sales.
- Assets: Average Value.
- Ratio: Turnover.
Example
Input: 1M, 500k
Result: 2.0x
FAQ
Sector dependent?
Yes, retail high, utilities low.
Conclusion
Low turnover indicates inefficient asset usage.