The formulas used in the calculations are:
\[ \text{average assets} = \frac{\text{beginning assets} + \text{ending assets}}{2} \]
\[ \text{total asset turnover} = \frac{\text{revenue}}{\text{average assets}} \]
This calculator computes the Total Asset Turnover based on the input values of revenue, beginning assets, and ending assets. Total Asset Turnover is a measure of how efficiently a company uses its assets to generate sales revenue.
Let's assume the following:
Calculate the Average Assets:
\[ \text{average assets} = \frac{8,000,000 + 9,000,000}{2} = 8,500,000 \]
Calculate the Total Asset Turnover:
\[ \text{total asset turnover} = \frac{10,000,000}{8,500,000} = 1.18x \]
Therefore, the Total Asset Turnover is 1.18x.
