- Assets turnover
Assets turnover is a
business term and may be used as a broad measure ofasset efficiency and is calculated by dividing salesrevenue by the total assets.Its also used in the
Du Pont Identity :Net Earnings/Shareholders Eq. = Net Earnings/Sales(Income) * Sales(Income) / Total Assets * Total Assets / Shareholders Eq.
In which::Net Earnings/Sales(Income) is known as NET MARGIN:Sales(Income)/Total Assets is known as ASSETS TURNOVER:Total Assets/Shareholders Eq. is known as LEVERAGE
The net margin is a summary indicator of an
income statement , Asset turnover is an indicator of the left side of thebalance sheet (total assets’ side) and Leverage is an indicator of the right side of the Balance Sheet (liabilities and shareholders’ equity’ side).The Du Pont Identity helps many companies or individuals, visualize and comprehend the analysis of a financial statement or annual report of a company, in return on assets and
return on investment s.ee also
*
Inventory Turnover
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См. также в других словарях:
assets turnover ratio — (Economics) ratio between the turnover of sales and the scope of a company s operational assets … English contemporary dictionary
turnover — or turns Terms used to describe the number of operating cycles in a defined period of time or the length of each specific operating cycle. Typical turnover cycles are: the rate at which accounts receivable converts to cash, the rate at which… … Financial and business terms
Turnover — Mutual Funds: A measure of trading activity during the previous year, expressed as a percentage of the average total assets of the fund. A turnover ratio of 25% means that the value of trades represented one fourth of the assets of the fund.… … Financial and business terms
turnover proceeding — A summary proceeding in a court of bankruptcy brought for the purpose of summarily retrieving for the trustee in bankruptcy, who is entitled thereto, assets concealed and diverted from him the efficacy of such proceeding appearing in the fact… … Ballentine's law dictionary
turnover on capital — relation of the conversion of assets into cash … English contemporary dictionary
turnover — A business term for the employment of assets in a series of acts, as buying a stock of particular merchandise, such as shoes, selling it out, and then replenishing the stock by another purchase. Park Amusement Co. v McCaughn (DC Pa) 14 F2d 553 … Ballentine's law dictionary
Asset turnover — is a financial ratio that measures the efficiency of a company s use of its assets in generating sales revenue or sales income to the company. [cite book |last = Bodie |first = Zane |coauthors = Alex Kane and Alan J. Marcus |title = Essentials of … Wikipedia
Fixed asset turnover — is the ratio of sales (on the Profit and loss account) to the value of fixed assets (on the balance sheet). It indicates how well the business is using its fixed assets to generate sales.Fixed Asset Turnover = frac{Sales}{Average net fixed… … Wikipedia
rate of turnover — turnover ratio The frequency, expressed in annual terms, with which some part of the assets of an organization is turned over (i.e. replaced by others of the same class). In order to calculate how frequently stock is turned over, the total sales… … Accounting dictionary
rate of turnover — turnover ratio The frequency, expressed in annual terms, with which some part of the assets of an organization is turned over (i. e. replaced by others of the same class). In order to calculate how frequently stock is turned over, the total sales … Big dictionary of business and management
