Asset Turnover is a measure of how effectively a company uses assets to generate revenue. Joseph Piotroski calculates the Asset Turnover by dividing revenue by the value of total assets on the balance sheet at the beginning of a finanical year. Elsewhere, Stockopedia divides revenue by the average assets (ie. opening asset position + ending asset position / 2). This metric is calculated using balance sheet values from the previous financial period, rather than using the most recent balance sheet data.
Asset Turnover shows how efficient a company is at using its assets to generate sales. It calculates the total revenue for every dollar/pound of assets a company owns.
The formula is: Total Sales / Opening Total Assets
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