Asset Turnover Ratio
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.
Asset Turnover Ratio in Python
get_asset_turnover_ratio is part of 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.