What is Asset Turnover?
Asset Turnover A financial ratio measuring the efficiency with which a company uses its assets to generate sales, calculated as total revenue divided by average total assets for the period.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Asset Turnover” Used in Practice?
A high asset turnover ratio indicates that the company is effectively utilizing its assets to generate sales revenue.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Asset Turnover?
A financial ratio measuring the efficiency with which a company uses its assets to generate sales, calculated as total revenue divided by average total assets for the period.
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