Asset Turnover

What is the definition of Asset Turnover?

Asset Turnover - or Sales to Assets - is calculated as the total revenue for every dollar of assets a company owns by dividing last year's total revenue into the average assets for the period.


Stockopedia explains Asset Turnover...

This ratio shows how efficient a company is at using its assets to generate sales.
Companies with low profit margins tend to have high asset turnover, those with high profit margins have low asset turnover - it indicates pricing strategy.