How to calculate Asset Turnover Ratio

Formula

Asset turnover = revenue ÷ average total assets

SQL query

This example assumes: annual_financials(year int, revenue numeric, total_assets numeric). It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT year,
       revenue,
       revenue / NULLIF((total_assets + LAG(total_assets) OVER (ORDER BY year)) / 2, 0) AS asset_turnover
FROM annual_financials
ORDER BY year;

Common mistakes that make Asset Turnover Ratio wrong

• Compare only within an industry; retailers and utilities have very different asset bases.
• A large asset purchase late in the year lowers the ratio before it can earn revenue.
• Use the same revenue definition as your other ratios so they reconcile.

Ask for Asset Turnover Ratio in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

• What is our asset turnover for each year?
• How did revenue and total assets change over the last 5 years?