Asset Turnover
The amount of sales generated for every dollar's worth of assets. It is calculated by dividing sales in dollars by assets in dollars.
Formula:
Investopedia Says:
Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better. It also indicates pricing strategy: companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Related Terms:
Asset
Du Pont Identity
Fundamental Analysis
Inventory Turnover
Net Sales
Ratio Analysis
Revenue
Turnover |