⚡Efficiency Ratios
Asset Turnover
Net Sales ÷ Average Total Assets = Asset Turnover
What It Means
How efficiently assets generate sales.
✓Higher = more sales per dollar of assets
Related Formulas
Inventory Turnover
Cost of Goods Sold ÷ Average Inventory = Inventory Turnover
Days Sales in Inventory
365 ÷ Inventory Turnover = Days Sales in Inventory
Accounts Receivable Turnover
Net Credit Sales ÷ Average Accounts Receivable = A/R Turnover
Days Sales Outstanding (DSO)
365 ÷ Accounts Receivable Turnover = Days Sales Outstanding
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