Total Asset Turnover Calculator







Formulas

The formulas used in the calculations are:

\[ \text{average assets} = \frac{\text{beginning assets} + \text{ending assets}}{2} \]

\[ \text{total asset turnover} = \frac{\text{revenue}}{\text{average assets}} \]

Description

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.

Example Calculation

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.