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:
Investopedia Commentary
Asset turnover measures the firm's efficiency at using its assets in generating sales or revenue the higher the number the better. It also indicates pricing strategy: companies with low profit margins tend to have high asset turnover those with high profit margins have low asset turnover.
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See also: Asset, Du Pont Identity, Fundamental Analysis, Inventory Turnover, Net Sales, Revenue, Turnover