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total asset turnover

   Also found in: Wikipedia 0.06 sec.
Total asset turnover
The ratio of net sales to total assets.

total asset turnover
A financial ratio that indicates the effectiveness with which a firm's management uses its assets to generate sales. A relatively high ratio tends to reflect intensive use of assets. Total asset turnover is calculated by dividing the firm's annual sales by its total assets. Sales are listed on the firm's income statement and assets are listed on its balance sheet. Also called asset turnover.

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