Asset Turnover Ratio Calculator
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Quick Guide to Use this Calculator
- Enter the total annual revenue in the respective input field.
- Provide the values for beginning and ending total assets and fixed assets value.
- Click the “Calculate” button to get the Total Asset Turnover Ratio and Fixed Asset Turnover Ratio.
- To start a new calculation, click the “Reset” button.
Note: If you want to calculate only the total asset turnover ratio, input only the beginning and ending total asset value along with total annual revenue. Same way, if you want to calculate only the fixed asset turnover ratio, input only the beginning and ending fixed asset value along with total annual revenue.
Formula
Total asset turnover ratio = Total Annual Revenue/ Average Total assets Value
Where, Average Total assets Value = Beginning total assets value+ Ending total assets value)/2
Fixed asset turnover ratio = Total Annual Revenue/ Average fixed assets Value
Where, Average fixed asset Value = Beginning fixed assets value+ Ending fixedassets value)/2
What is the Total Asset Turnover Ratio?
The Total Asset Turnover Ratio measures a company’s ability to generate revenue from its assets. It is calculated by dividing the total annual revenue by the average total assets.
What is a fixed Asset Turnover Ratio?
The Fixed Asset Turnover Ratio serves as a financial measure that evaluates the effectiveness of a company in leveraging its fixed assets for revenue generation.
This metric explores the correlation between the annual sales and the average fixed asset value over a defined period.
Who Can Use This Calculator?
Individuals such as financial analysts, business owners, and anyone interested in assessing a company’s efficiency in utilizing its assets to generate revenue can use this calculator.
Which Industries Can Use This Calculator?
Industries across various sectors, including manufacturing, retail, services, and more, can use this calculator to evaluate their asset utilization and financial performance.
Benefits of Using This Calculator
- Quick Analysis: Obtain rapid insights into the efficiency of asset utilization.
- Financial Planning: Useful for strategic financial planning and decision-making.
- Comparative Analysis: Compare performance against industry benchmarks.
FAQs
Can I use this calculator for any currency?
Yes, the calculator allows you to select your preferred currency.
How often should I use this calculator?
It can be used periodically for financial check-ups or when assessing business strategies.
Is this calculator applicable to both small and large businesses?
Yes, businesses of all sizes can benefit from this calculator.
Conclusion
Asset Turnover Ratio Calculator is a valuable tool for businesses to assess and enhance their financial performance. Regular use of this calculator can aid in making informed decisions and optimizing resource utilization.