Asset Coverage Ratio Formula use to shows the sales generated by each dollar of the company assets. If the result of the formula is 0.5 it means that the company generates 50 cents of sales from each dollar of the assets.
Asset Coverage Ratio Formula calculated by dividing the net sales by average total assets.
Asset Coverage Ratio Formula=Net Sales/Average Total Assets
From the income statement net sales found. Average total assets calculated by adding the beginning and ending total assets balance and dividing it by 2.