Best Answer

Total asset turnover ratio = total sales / total assets

User Avatar

Wiki User

โˆ™ 2014-07-20 20:12:38
This answer is:
User Avatar
Study guides

What is the body of law that governs the availability and use of federal funds

Who has the final word on how much money can be spent by a given agency or program under the separation of powers doctrine

How do you spell commitments

Which stage of disbursement accounting is also known as the accounts payable stage

See all cards
56 Reviews

Add your answer:

Earn +20 pts
Q: How do you calculate total asset turnover?
Write your answer...
Still have questions?
magnify glass
Continue Learning about Accounting
Related questions

If theasset turnover of a company is 3.2 the total assets are 32000 what were the net sales?

Formula for asset turnover: Asset turnover = net sales / total assets Net sales = 32000 * 3.2 = 102400

What is the asset turnover ratio if the net sales are 51195 and the average total assets is 135128?

Asset Turnover = Net Sales/Average Total Assets Asset Turnover = 51195/134128 Asset Turnover = 0.38169 It depends on the industry, but generally a number this low indicates that the company has too much money tied up in assets that are not contributing to sales. It's a ratio of sales/total assets (or total average assents). Profit margins are an important consideration when analysing this number.

What is the asset turnover ratio used for?

The asset turnover ratio is used to calculate how effectively a company is using it's assets to encourage production. If the asset turnover ratio is high, the assets are being used effectively. If the ratio is low, the assets could be used more productively to facilitate production.

What is relationship of asset turnover rate to the rate of return on total assets?

It is the ratio..

What is asset turnover?

Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal.Formula:Asset Turnover = Sales / Average Total Assets

What does total asset turnover have to do with organizational efficiency?

to know how efficiently the assets were used in the organisation

Define total enzyme concentration?

how do you calculate turnover number?

How do you calculate equity turnover?

shareholder equity / total assets

How do you calculate the net asset ratio?

Net Asset Ratio = Total Net Assets/Total Assets

What is the asset turnover ratio if the profit margin is 5 percent and the return on assets is 13.5 percent?

ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%

How do you solve for equity multiplier with ROA 10 percent profit margin 2 percent and ROE 15 percent?

Equity Multiplier ROA*Equity Multiplier=ROE so, (10%)*(x)=(15%), therefore, Equity Multiplier=15%/10%= 1.5 times Total Asset Turnover Profit Margin*Total Asset Turnover = ROA, so (2%)*(x)=10%, therefore Total Asset Turnover=10%/2%= 5 times

Can a asset turnover ratio be negative?

yes it can

People also asked