Asset turnover
| asset turnover See total asset turnover. |
Asset Turnover
What Does Asset Turnover Mean?
The amount of sales generated for everydollar's worth of assets; it is calculated by dividing sales in dollars by assets in dollars:
Investopedia explains Asset Turnover
Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue; the higher the number, the better. It also reflects pricing strategy; companies with low profit margins tend to have high asset turnover, whereas those with high profit margins have low asset turnover.
Related Terms:
• Fundamental Analysis
• Inventory Turnover
• Net Sales
• Revenue
• Turnover
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