total asset turnover


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Total 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.

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.
References in periodicals archive ?
The total asset turnover for start-ups has been stable at X times while the same for mid-sized firms is X times, implying higher efficiency for start-ups.
3 Receivables turnover ratio index X 2 Inventory turnover ratio Current asset turnover ratio Fixed asset turnover ratio Total asset turnover ratio Profitability 0.
The extended DuPont equation is a method of calculating a firm's return on equity (ROE) by utilizing the profit margin (PM), total asset turnover (TATO) and equity multiplier (EM).
He noticed that the product of two often-computed ratios, net profit margin and total asset turnover, equals return on assets (ROA).
25 Total assets (000) 37,543 10,001 70,293 Total asset turnover 1.
From an accounting perspective, firms generate returns via working capital (receivables and inventory) turnover, total asset turnover, operating leverage, and margins (Eisemann, 1997).
However, total asset turnover is less than 1 and the return on assets and return on equity are quite low.
It is determined by the return on assets (ROA) and the total asset turnover (ROE = ROA X total asset turnover).
Inventory turnover, total asset turnover, sales per employee, operating profit margin, basic earning power and cost of goods sold as a percentage of sales are each analyzed for significant changes.
In many wholesale environments, numerous asset-based ratios such as sales to net-working capital, total asset turnover, and inventory turnover are critical measures of success.
Research findings suggest that a firms brand value does provide an impact on financial performance measured by its total asset turnover, but the same cannot be said for its return on assets.

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