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Efficiency Ratio Calculator (Financial Analysis)

Enter net sales, total assets, trade receivables and inventory to instantly compute total asset turnover, receivables turnover and inventory turnover, plus each turnover period in days. See how efficiently your assets generate sales.

Input

Any currency unit is fine (yen, thousands, millions, etc.). Turnover ratios and turnover periods do not depend on the unit.

millions
millions
millions
millions

Result

Total asset turnover

1.25×

Total assets turn into sales about 1.25 times per year

Total asset turnover

1.25 ×

Receivables turnover

6.25 ×

Inventory turnover

8.33 ×

Turnover ratios and turnover periods

MetricTurnover ratioTurnover period
Total assets1.25 ×292.0 days
Trade receivables6.25 ×58.4 days
Inventory8.33 ×43.8 days

How it works

  • Total asset turnover (times) = net sales / total assets. It shows how many times total assets turned over into sales during the year; a higher value indicates more efficient use of assets.
  • Receivables turnover (times) = net sales / trade receivables (notes + accounts receivable), and inventory turnover (times) = net sales / inventory. Higher values mean faster collection and sales cycles.
  • Turnover period (days) = 365 / turnover ratio (= asset / net sales × 365). The ratio is a count of turnovers, while the period is the approximate number of days for one turnover — a rough guide to collection and inventory-clearing time.
  • This tool is an estimate using the entered point-in-time balances (for example, year-end). Stricter analysis may use the average of opening and closing balances ((opening + closing) / 2); choose the method that fits your purpose.
  • The currency unit (yen, thousands, millions, etc.) is arbitrary as long as net sales and each asset use the same unit. Turnover ratios and periods do not depend on the unit, so enter everything in one consistent unit.
  • Note: appropriate levels vary widely by industry, and the figures here are only a guide. For actual management decisions or disclosure, check multi-period trends and peer comparisons together with a professional.