Asset to Sales Ratio - Meaning, Formula, Calculations, Interpretation, Examples

In this video on Asset to Sales Ratio, we are going to discuss this topic in detail including its formula, calculation and examples.

𝐀𝐬𝐬𝐞𝐭 𝐭𝐨 𝐒𝐚𝐥𝐞𝐬 𝐑𝐚𝐭𝐢𝐨
------------------------------------

Asset to Sales Ratio formula indicates how much asset a company possesses in regards to the revenue it earns using its assets.

𝐀𝐬𝐬𝐞𝐭 𝐭𝐨 𝐒𝐚𝐥𝐞𝐬 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
---------------------------------------------------

Asset to Sales Ratio = Total Assets / Sales

𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐀𝐬𝐬𝐞𝐭 𝐭𝐨 𝐒𝐚𝐥𝐞𝐬 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
-----------------------------------------------------------------------

Rita wants to look at TBM Company and its asset to sales ratio.
Rita finds out that at the end of the year TBM Company has total assets of $600,000.

And Rita also discovers that last year, TBM Company has revenues of $200,000.

What would be the asset to sales ratio of TBM Company?

We will simply put the data into the formula.

Asset to Sales Ratio formula = Total Assets / Sales

= $600,000 / $600,000 = 6.

The asset to sales ratio of TBM Company is 6.

To know more about 𝐀𝐬𝐬𝐞𝐭 𝐭𝐨 𝐒𝐚𝐥𝐞𝐬 𝐑𝐚𝐭𝐢𝐨 𝐅𝐨𝐫𝐦𝐮𝐥𝐚, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞: https://www.wallstreetmojo.com/asset-sales-ratio-formula/

Connect with us!
Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/
Facebook ► https://www.facebook.com/wallstreetmojo
Instagram ► https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_link
Twitter ► https://twitter.com/wallstreetmojo

Видео Asset to Sales Ratio - Meaning, Formula, Calculations, Interpretation, Examples канала WallStreetMojo