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Asset Turnover Ratio Calculator

Enter net revenue and average total assets to get the asset turnover ratio and revenue per $1 of assets.

Result

1.50
$1.50

How it is calculated

Asset turnover = revenue / assets. Revenue is the sales for the period (usually a year) and assets is the total assets figure you type in. The tool does not average anything itself: for the textbook ratio, enter the average of opening and closing total assets, (opening + closing) / 2.

The result is shown with two decimals as a plain ratio and as dollars of revenue per dollar of assets. Revenue may be zero but not negative, and assets must be above zero; otherwise nothing is shown. Both figures must be in the same currency and cover the same period. What counts as a good ratio depends on the industry.

Worked example

A company has annual revenue of 1,200,000 and average total assets of 800,000. Turnover = 1,200,000 / 800,000 = 1.50. In dollar terms that is $1.50 of revenue for every $1 of assets. If the same company had 1,600,000 of assets at year end, the ratio would be lower, which is why the averaging step matters.

Try this example →

Common mistakes

  • Using year-end assets for a fast-growing company instead of the average: assets that jumped late in the year make the ratio look worse than the year's operations were.
  • Mixing periods, such as quarterly revenue with annual assets: the ratio then comes out about four times too small.
  • Using profit instead of revenue: the numerator must be sales, so entering net income gives a profit-to-assets figure, which is a different ratio (return on assets).
  • Comparing a retailer's turnover with a utility's: capital-heavy businesses are naturally low, so only same-industry comparisons mean much.

About this calculator

Asset turnover ratio is net revenue ÷ average total assets (you enter net revenue and the average total assets, which you work out yourself as opening plus closing assets divided by two; the calculator simply divides by the figure you type) — it measures how many dollars of sales a company generates for every dollar tied up in its asset base, from inventory and equipment to receivables and cash.

Analysts use it to compare operating efficiency within an industry: a grocery chain with thin margins typically needs a high asset turnover to be profitable, while a capital-intensive business like a utility or a hotel operator runs on much lower turnover by design — so the ratio only means much when benchmarked against similar companies, not compared across totally different sectors.

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