Total asset turnover is calculated by dividing average total assets by net sales.

Total Asset Turnover

An efficiency ratio indicating how well a company's assets are used to generate revenue from sales.

Average Total Assets

The average value of all the assets a company owns over a specific time period, calculated by adding the beginning and ending assets and dividing by two.

Net Sales

The amount of revenue generated by a company after deducting returns, allowances for damaged goods, and discounts.