![]() ![]() The formula for Turnover Ratio can be calculated by using the following points:Ĭost of Goods Sold is the total cost of the goods sold during the period under consideration. Total assets turnover ratio of 1.28 times shows that net sales are above average total assets, which are always favorable to have, though it should be compared to previous year’s data as well as other players in the industry to have a complete analysis. Total Assets Turnover Ratio = 1.28 Times.Total Assets Turnover Ratio = 15,000 / 11,750.Total Assets Turnover Ratio = Net Sales / Average Total Assets Total Assets Turnover Ratio is calculated using the formula given below What is the Total Assets Turnover Ratio?Īverage Total Assets is calculated using the formula given below.Īverage Total Assets = (Opening Total Assets + Closing Total Assets) / 2 The given values are Net Sales for the year = $ 15,000, Total assets at the beginning of the year = $ 11,500 and Total assets at the end of the year = $ 12,000. Let us take an example to calculate the Total Assets Turnover Ratio. It shows that sales and, specifically, credit sales are 20 times the accounts receivable outstanding, which is a good turnover to have, but it should be compared to previous year’s data as well as other players in the industry to have a complete analysis. Accounts Receivable Turnover Ratio = 20 times.Accounts Receivable Turnover Ratio = 60,000/ 3,000. ![]()
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