Revenue generated per rupee of assets. The Asset Turnover Calculator takes revenue for the year, total assets at the start of the year, total assets at the end of the year and returns asset turnover plus average total assets, revenue per 100 of assets. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Asset Turnover Calculator works
Measures how much revenue each unit of assets produces. Retailers and service firms run high turnover on thin margins; manufacturers and utilities the reverse.
Worked example
With the example values (revenue for the year of $2,000,000, total assets at the start of the year of $900,000, total assets at the end of the year of $1,100,000), the asset turnover is 2.00x; average total assets $1,000,000.00, revenue per 100 of assets $200.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is asset turnover calculated?
asset turnover = revenue ÷ average total assets.
Which figures do I need?
Revenue for the year, total assets at the start of the year, total assets at the end of the year. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
