Assets Turnover Formula in Excel

In this guide, you’ll discover how to use the Assets Turnover formula in Excel with MarketXLS. This function helps you quickly measure how effectively a company uses its assets to generate sales revenue. Whether you’re evaluating performance for investment decisions or general analysis, the AssetsTurnover function is a powerful way to gain insights into operational efficiency.

Understanding Assets Turnover

• Purpose: The Assets Turnover ratio indicates how efficiently a company manages its assets to produce revenue.
• Key Benefits:
  • Quickly compare operational efficiency across different companies.
  • Identify trends in asset management over time.
  • Helps investors and analysts decide whether a firm is effectively utilizing its resource base.
• When to Use:
  • Financial analysis to assess how effectively a firm converts investments in assets into revenue.
  • Comparative analysis across different tickers or over time for the same company.
  • Portfolio screening for identifying strong asset management practices.

Syntax and Parameters

Use the following syntax to call the AssetsTurnover function in Excel with MarketXLS:

=AssetsTurnover(Symbol)

?? Note: If the ticker symbol is invalid or data is unavailable, the function returns "NA".

Return Value

• The function returns a numeric value indicating the ratio of the company’s total sales to its average total assets.
• Commonly used in fundamental analysis, higher values suggest efficient use of assets, while lower values can highlight inefficient asset utilization.

Examples and Usage

Below are some practical ways to use the AssetsTurnover formula in Excel:

1. Basic Usage for a Single Stock:

   =AssetsTurnover("MSFT")

   This returns the Assets Turnover ratio for Microsoft.

2. Indices:

   =AssetsTurnover("^SPX")

   Evaluate the S&P 500 Index if data is made available as an aggregated ratio.

3. Options:

   =AssetsTurnover("@MSFT 110122C00020000")

   Get the ratio for an option contract if covered by MarketXLS.

4. Crypto:

   =AssetsTurnover("BTCUSD:DEFAULT")

   Measure the ratio for a crypto pair if available.

? Pro Tip: Combine AssetsTurnover with other key ratios like EPS or Market Capitalization to build a comprehensive view of a company’s performance.

Common Questions

1. What if I enter an invalid symbol?

   • The formula returns "NA" if the symbol is invalid or data cannot be found.

2. How often is the data updated?

   • MarketXLS typically updates its data feeds regularly, but refresh rates may vary by market and data provider.

3. Can I use cell references for the symbol?

   • Yes. For example:

     =AssetsTurnover(A1)

     Where cell A1 contains a valid ticker symbol.

4. Why is the return value different from other data sources?

   • Data differences can occur due to timing, calculation methods, or data providers. MarketXLS applies its own data aggregation and calculation approach.

5. Is there a performance impact when using multiple AssetsTurnover formulas?

   • Each formula fetches data from MarketXLS’s API. For large spreadsheets, consider batching or limiting calls to reduce load times.

Use the AssetsTurnover formula in Excel with MarketXLS to gain actionable insights into a company’s efficiency in generating revenue from its asset base. Combine it with other fundamental metrics for deeper analysis and more confident decision-making.