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Asset turnover
Revenue for each dollar of assets: the formula, how it links margins to return on assets, and the figure for each company.
The short answer
Asset turnover is revenue divided by total assets: how many dollars of sales a company brings in for each dollar of assets on its balance sheet. Across the 89 companies here the median is 0.52. Walmart's is 2.51 and Microsoft's is 0.44, a gap that comes from what each business sells rather than from how well either is run.
The formula
Asset turnover = revenue ÷ total assets
Revenue is the top line of the income statement; total assets are on the balance sheet. Some analysts divide by the average of the opening and closing assets for the year, which matters when a company has grown quickly or made a large acquisition. The table uses year-end assets for every company.
How it connects margin and return on assets
Return on assets = net margin × asset turnover
This split, often called the DuPont breakdown, shows two different ways to reach a return. Walmart's fiscal 2026 net income of $21.9B on revenue of $713.2B is a net margin of 3.1%, and its assets of $284.7B turned over 2.51 times, for a return on assets of about 7.7%. Microsoft's net margin was 40.3% ($133.7B on $331.8B) with turnover of 0.44 on assets of $758.4B, for a return on assets of about 17.6%.
Source: Walmart 10-K for fiscal 2026, filed Mar 13, 2026 · Microsoft 10-K for fiscal 2026, filed Jul 29, 2026
Return on assets and profit margins cover the other two pieces.
Why industries differ
- High turnover: retailers, distributors and other businesses that resell goods at thin margins. The highest figure here is Costco's, at 3.40.
- Middle: manufacturers and software companies, whose assets include factories or large cash and investment balances.
- Low turnover: utilities, pipelines, real estate and telecom companies, which own large networks or buildings that earn revenue over decades. The lowest here is NextEra Energy's, at 0.13.
Acquisitions also lower the ratio for a while, since the goodwill and intangible assets they add arrive before a full year of the extra revenue. Goodwill explains those assets.
Every company
Revenue for the latest fiscal year divided by total assets at that year end, from each 10-K, sorted by asset turnover. Banks are left out, since their revenue is defined differently.
Common questions
How do you calculate asset turnover?
Divide a year's revenue by total assets, at year end or averaged over the year. The result is revenue per dollar of assets.
What is a normal asset turnover?
It depends on the industry. Across the 89 companies here the median is 0.52; retailers sit well above that and utilities well below.
How does asset turnover relate to return on assets?
Return on assets equals net margin multiplied by asset turnover. A business can reach the same return with thin margins and fast turnover or wide margins and slow turnover.
Why does an acquisition lower asset turnover?
The buyer adds the acquired assets, including goodwill, to its balance sheet at once, while the acquired revenue only counts from the closing date.
Why are banks left out?
A bank's revenue is mostly net interest income and fees, and its assets are mostly loans, so the ratio isn't comparable with other companies.
See it side by side
The same figures for two companies at once, each linked to its 10-K:
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.