Total assets turnover ratio
total asset turnover formula
Asset turnover,total asset turnover calculator
total asset ratio
Total asset turnover ratio compares the sales of a company to its asset base. The ratio measures the ability of an organization to efficiently produce sales, and is typically used by third parties to evaluate the operations of a business. Ideally, a company with a high total asset turnover ratio can operate with fewer assets than a less efficient competitor, and so requires less debt and equity to operate. The result should be a comparatively greater return to its shareholders.
Total asset turnover formula
Net sales ÷ Total assets = Total asset turnover