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how to calculate the average total assets. Next divide the total amount by 2. To determine your average total assets you will need to go back two years in your bookkeeping.
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Average total assets are calculated by adding together the value of assets at the beginning and end of an accounting period and dividing the sum by two according to TheFreeDictionary. Identify the assets that are considered part of the operating process. Total assets at the beginning and at the end of the year can be obtained from year ending balance sheets of two consecutive financial years.
Net income is found on the income statement which provides an overview of a.
Next divide the total amount by 2. To calculate average total assets simply add the ending value of your total assets from the previous year to the value of your total assets from the current year and divide the sum by two. Total Asset Turnover is a financial ratio that measures the efficiency of a companys use of its assets in generating revenue to the company. And then we need to add the beginning total assets and the ending total assets and then divide the sum by two to get a simple average.
