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Operating Asset Turnover Calculator

Calculate operating asset turnover: sales generated per dollar of operating assets.

Use the Operating Asset Turnover Calculator

Enter net sales and operating assets (or beginning and ending to average). Turnover is calculated.

Inputs

Net sales and average operating assets (or beginning & ending to average). Operating assets exclude excess cash/non-operating investments.

Results

Operating asset turnover
2.22

Turnover = Net sales ÷ Average operating assets. Higher ratio means more sales generated per dollar of operating assets.

What this metric means

Operating asset turnover measures how efficiently you use operating assets to generate sales. Higher ratio means more revenue per dollar of assets.

How to calculate it

Turnover = Net sales ÷ Average operating assets. Average = (Beginning + Ending operating assets) ÷ 2 for the same period as sales.

How to improve the metric

Increase sales without proportionally increasing operating assets; reduce excess inventory or receivables; or improve utilisation of fixed assets.

Common mistakes

Including non-operating assets; using total assets instead of operating only; or mixing time periods for sales and asset figures.

How to interpret your result

Higher is generally better: more sales per dollar of assets. Track over time and compare to peers. A drop may signal underused assets or slowing demand.

FAQs

What is operating asset turnover?▾
Net sales divided by average operating assets. It shows how much revenue you generate per dollar of assets used in operations.
What counts as operating assets?▾
Assets used to run the business: inventory, receivables, PP&E, etc. Exclude excess cash and non-operating investments if you want a pure operating view.
Why use average operating assets?▾
Sales occur over a period; a single point-in-time asset figure can be misleading. Average of beginning and ending balances is a simple and common approach.
What's a good turnover ratio?▾
It depends on the industry. Capital-intensive businesses have lower turnover; asset-light ones higher. Compare to your sector and your own trend.

Related tools

Browse all calculators on NetGrow.

NetGrow

Operating Asset Turnover Calculator

Calculate operating asset turnover: sales generated per dollar of operating assets.

Use the Operating Asset Turnover Calculator

Enter net sales and operating assets (or beginning and ending to average). Turnover is calculated.

Inputs

Net sales and average operating assets (or beginning & ending to average). Operating assets exclude excess cash/non-operating investments.

Results

Operating asset turnover
2.22

Turnover = Net sales ÷ Average operating assets. Higher ratio means more sales generated per dollar of operating assets.

What this metric means

Operating asset turnover measures how efficiently you use operating assets to generate sales. Higher ratio means more revenue per dollar of assets.

How to calculate it

Turnover = Net sales ÷ Average operating assets. Average = (Beginning + Ending operating assets) ÷ 2 for the same period as sales.

How to improve the metric

Increase sales without proportionally increasing operating assets; reduce excess inventory or receivables; or improve utilisation of fixed assets.

Common mistakes

Including non-operating assets; using total assets instead of operating only; or mixing time periods for sales and asset figures.

How to interpret your result

Higher is generally better: more sales per dollar of assets. Track over time and compare to peers. A drop may signal underused assets or slowing demand.

FAQs

What is operating asset turnover?▾
Net sales divided by average operating assets. It shows how much revenue you generate per dollar of assets used in operations.
What counts as operating assets?▾
Assets used to run the business: inventory, receivables, PP&E, etc. Exclude excess cash and non-operating investments if you want a pure operating view.
Why use average operating assets?▾
Sales occur over a period; a single point-in-time asset figure can be misleading. Average of beginning and ending balances is a simple and common approach.
What's a good turnover ratio?▾
It depends on the industry. Capital-intensive businesses have lower turnover; asset-light ones higher. Compare to your sector and your own trend.

Related tools

Browse all calculators on NetGrow.