asset turnover


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Asset turnover

The ratio of net sales to total assets.

Asset Turnover

A ratio of a company's net sales to total assets. It is a measure of how efficiently management is using the assets at its disposal to promote sales. A high ratio indicates that the company is using its assets efficiently to increase sales, while a low ratio indicates the opposite. It is also known as total asset turnover.

asset turnover

References in periodicals archive ?
To test hypotheses 1, 2, and 3 (impact of cash conversion cycle on invested capital, firm performance, and liquidity), stepwise regression models were analyzed that included firm size and industry as the control variables, cash conversion cycle as the independent variable, and invested capital, asset turnover, return on invested capital, and liquidity as the dependent variables (see Tables 2a and 2b).
Companies located in industrial concentrations may see a larger increase in sales as opposed to those of firms not located in concentrated areas (Federacao das Industrias do Estado de Sao Paulo [FIESP], 2008), which would directly affect the asset turnover.
Massimo cited an example wherein one top-bracket investor invested $1 million in a regular mutual fund that has a before-tax return of 8% and an asset turnover of 100%.
The study investigates the effects of Asset Turnover, Gearing, Current asset to Total Asset, Trade debtors to total asset, Current liability to total asset, inventory days, accounts payable and current ratio on Profitability of Indian Manufacturing companies.
Table 1: Advanced DuPont Ratios for Target, Walmart, and Costco, 1998-2007 (All ratios are expressed as percentages, except for asset turnover and debt/equity.
For example, a cost leader like Wal-Mart may generate a relatively low net operating income to sales but balance that against a relatively high asset turnover.
Target achieves its operating performance with higher profit margins but lower operating asset turnover.
The average local asset turnover for the top 100 increased from 3.
Our asset strategy needs to relentlessly evaluate the best approach for the company as far as asset purchasing, asset turnover and regional asset deployment while at the same time supporting the exceptional standard of customer satisfaction we provide to our clients on every job we do throughout the world.
It is determined by the return on assets (ROA) and the total asset turnover (ROE = ROA X total asset turnover).
The measures of operational efficiency include days of sales outstanding, inventory turnover, days cost of goods sold in inventory, asset turnover, and net receivables turnover flow.
Under the direction of its president Kevin Brady, Satellite Logistics Group's in-depth understanding of the beverage industry, led it to develop several distribution systems for its clients, including the Kegspediter[R] Keg Asset Management System According to Brady, this system improves the client's ROI by optimizing asset turnover.