12/15/2023 0 Comments Average net fixed assetsInvestors should review the trend in the asset turnover ratio over time to determine whether asset usage is improving or deteriorating. It is possible that a company’s asset turnover ratio in any single year differs substantially from previous or subsequent years. There are a couple of things to keep in mind when you calculate your asset turnover ratio.įormula and Calculation of the Asset Turnover Ratio Average total assets refer to the average value of your long-term and short-term assets for at least the past two fiscal years or the previous fiscal year. The asset turnover ratio calculation can be modified to omit these uncommon revenue occurrences. However, the company then has fewer resources to generate sales in the future.
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