Average Total Assets Calculator

Formula

The formula to calculate the Average Total Assets is:

\[ \text{AA} = \frac{\text{ACY} + \text{APY}}{2} \]

Where:

$\text{AA}$ is the average total assets
$\text{ACY}$ is the total assets value of the current year or period
$\text{APY}$ is the total assets value of the previous year or period

What are Average Total Assets?

Average Total Assets are defined as the mean asset value over a given amount of time. This metric is used to smooth out fluctuations in asset values and provide a more stable measure of a company's asset base.

Example Calculation

Let's assume the following values:

Current Year Assets (ACY) = $1,000,000
Previous Year Assets (APY) = $900,000

Using the formula to calculate the Average Total Assets (AA):

\[ \text{AA} = \frac{1,000,000 + 900,000}{2} = \frac{1,900,000}{2} = 950,000 \text{ dollars} \]

The Average Total Assets is $950,000.