Sales to Assets Ratio Calculator

Formula

The formula to calculate Sales to Assets Ratio is:

\[ \text{SAR} = \frac{\text{S}}{\text{A}} \]

Where:

$\text{SAR}$ is the Sales to Assets Ratio
$\text{S}$ is the total sales revenue ($)
$\text{A}$ is the total assets value ($)

What is Sales to Assets Ratio?

The Sales to Assets Ratio measures how efficiently a company is using its assets to generate sales revenue. A higher ratio indicates better performance and efficient use of assets.

Example Calculation 1

Let's assume the following values:

Total Sales Revenue (S) = $500,000
Total Assets Value (A) = $250,000

Using the formula:

\[ \text{SAR} = \frac{500000}{250000} = 2 \]

The Sales to Assets Ratio is 2.

Example Calculation 2

Let's assume the following values:

Total Sales Revenue (S) = $1,000,000
Total Assets Value (A) = $500,000

Using the formula:

\[ \text{SAR} = \frac{1000000}{500000} = 2 \]

The Sales to Assets Ratio is 2.