Calculate the asset turnover ratio, an efficiency ratio that measures how efficiently a company uses its assets to generate sales.

The asset turnover ratio is calculated by dividing the company’s net sales (revenue) by its average total assets. It measures how well a company utilizes its assets to generate revenue. A higher asset turnover ratio indicates that the company is generating more revenue per unit of assets, which is generally seen as a positive sign of operational efficiency.

The formula is as follows:

\[\text{Asset Turnover Ratio} = \text{Net Sales} / \text{Average Total Assets}\]

Also known as: asset efficiency, revenue per asset.

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Calculate the Asset Turnover Ratio in Python

The Asset Turnover Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_asset_turnover_ratio as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

asset_turnover_ratios = toolkit.ratios.get_asset_turnover_ratio()

Which returns:

  2021 2022 2023 2024 2025
AAPL 1.0841 1.1206 1.0868 1.0899 1.1493
TSLA 0.942 1.1277 1.0243 0.8544 0.7298

Parameters

get_asset_turnover_ratio accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Inventory Turnover Ratio Days of Inventory Outstanding Days of Sales Outstanding Operating Cycle Accounts Payables Turnover Ratio Days of Accounts Payable Outstanding Cash Conversion Cycle Cash Conversion Efficiency Receivables Turnover SGA to Revenue Ratio Fixed Asset Turnover Operating Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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