Turnover Profit Calculator

Formula

The formula to calculate the Turnover Profit (TP) is:

\[ \text{TP} = \frac{\text{NS}}{\text{TA}} \]

Where:

$ \text{TP} $ is the Turnover Profit ($/$)
$ \text{NS} $ is the net sales revenue ($)
$ \text{TA} $ is the total assets ($)

What is Turnover Profit?

Turnover Profit (TP) is a measure of a company's efficiency in generating profit from its assets. It is calculated by dividing the net sales revenue by the total assets. This metric is useful for assessing how effectively a company is using its assets to generate sales and profit.

Example Calculation

Let's assume the following values:

Net Sales Revenue (NS) = $500,000
Total Assets (TA) = $1,000,000

Using the formula to calculate the Turnover Profit:

\[ \text{TP} = \frac{500,000 \text{ $}}{1,000,000 \text{ $}} = 0.50 \]

The Turnover Profit (TP) is 0.50.