Asset turnover


Asset turnover

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 Investments, 5th ed |publisher = McGraw-Hill Irwin |date = 2004 |pages =459 |isbn = 0072510773 ]

Asset Turnover = frac{Sales}{Average Total Assets}

* "Sales" is the value of "Net Sales" or "Sales" from the company's income statement
* "Average Total Assets" is the value of "Total assets" from the company's balance sheet in the beginning and the end of the fiscal period divided by 2.

ee also

* Assets turnover
* Total asset turnover

References


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Look at other dictionaries:

  • Asset turnover — The ratio of net sales to total assets. The New York Times Financial Glossary * * * asset turnover asset turnover ➔ turnover * * *    ► See Capital Turnover. * * * asset turnover UK US noun [C or U] (also ass …   Financial and business terms

  • asset turnover — The ratio of net sales to total assets. Bloomberg Financial Dictionary * * * asset turnover asset turnover ➔ turnover * * *    ► See Capital Turnover. * * * asset turnover UK US noun [C or U] (also asset turnover ratio …   Financial and business terms

  • 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: Also known as the Asset Turnover Ratio. Asset turnover measures a firm s efficiency at using its assets …   Investment dictionary

  • asset turnover — See: capital turnover …   Accounting dictionary

  • asset turnover — See capital turnover …   Big dictionary of business and management

  • asset turnover ratio — UK US noun [C] ► ACCOUNTING, FINANCE ASSET TURNOVER(Cf. ↑asset turnover) …   Financial and business terms

  • Total asset turnover — is used to determine how much sales revenue a company generates from its investment in assets. Asset Turnover = frac{Revenue}{Total assets}Suppose that two companies both have capital employed $100,000. However Company A has a sales revenue for… …   Wikipedia

  • Fixed-Asset Turnover Ratio — A financial ratio of net sales to fixed assets. The fixed asset turnover ratio measures a company s ability to generate net sales from fixed asset investments specifically property, plant and equipment (PP E) net of depreciation. A higher fixed… …   Investment dictionary

  • 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

  • Fixed asset turnover —   A ratio of revenue to fixed assets which is a measure of the productivity and efficiency of property, plant, and equipment in generating revenue. A high turnover reflects positively on the entity s ability to utilize properly its fixed assets… …   Energy terms