Asset turnover

Asset turnover is revenue divided by average total assets, measuring how efficiently a business generates sales from its asset base; it forms one component of the DuPont decomposition of return on assets.

ByHoang TruongUpdated July 2, 2026

FrameworkRatio analysis

See it move

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Asset turnover measures how hard a business makes its assets work. A logistics company earning €20,000,000 in revenue from €10,000,000 of average total assets has asset turnover of 2.0 — €2 of revenue per €1 of assets. Paired with net margin, it forms the DuPont decomposition of return on assets.

Where it fits

SubjectFinancial AccountingCoreTopicFinancial Statement Analysis & RatiosCore

The formula

LaTeX

\text{Asset turnover} = \dfrac{\text{Revenue}}{\text{Average total assets}}

Variables

$R e v$: Revenue (total sales for the period) (€)
$A T A$: Average total assets (mean of opening and closing balance sheet totals) (€)

Expressed as a multiple (e.g. 2.0×); higher values indicate more efficient use of the asset base to generate revenue.