What this calculator does
Asset turnover ratios works out how hard a company’s inventory, receivables and total assets are working to generate revenue. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaInventory turnover = COGS / Avg inventory; Receivables turnover = Revenue / Avg receivables; Total asset turnover = Revenue / Avg assets; Fixed asset turnover = Revenue / Avg net fixed assets
The inputs explained
| Field | What to enter |
|---|---|
| Revenue ($) | A number, measured in your currency. Starts at 1800000. |
| Cost of goods sold ($) | A number, measured in your currency. Starts at 1100000. |
| Average inventory ($) | A number, measured in your currency. Starts at 150000. |
| Average accounts receivable ($) | A number, measured in your currency. Starts at 120000. |
| Average total assets ($) | A number, measured in your currency. Starts at 1000000. |
| Average net fixed assets ($) | A number, measured in your currency. Starts at 500000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with revenue
Every other input is held at the calculator’s starting values while revenue varies. Select any row to load that scenario into the calculator.