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How to calculate Asset turnover

The Asset turnover formula, with plain worked examples you can check yourself.

Asset turnover = R ÷ Avg A

The result is a number in ×.

Worked examples

R = 700 · A = 700Asset turnover = 1×
R = 750 · A = 500Asset turnover = 1.5×
R = 1500 · A = 500Asset turnover = 3×

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Financial Statements.

Related terms

Balance sheetIncome statementAssetsLiabilitiesEquityCash flow statement

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