asset turnover

(redirected from Asset Turnover Ratios)

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 ?
Automotive Industry: OEM's Asset Turnover Ratios (Emerging Markets), 2007-2011 60
Despite the capital expenditure cut, AUO will maintain its investments in advanced technology and higher-value products, in order to achieve higher asset turnover ratios and to enhance the Company's long-term competitiveness.
The result could be lower asset turnover ratios, lower return on capital, and an increase in debt-toequity ratios, which could impact borrowing capacity or compliance with loan covenants.
They hypothesize a connection between the Du Pont factors, net operating income to sales and asset turnover ratios, and a firm's competitive strategy (cost leadership or differentiation).
H-6: The efficiency of a company as measured by inventory, debtors, and asset turnover ratios positively influences its profitability.
Other commodity groups which do less processing--such as poultry/livestock cooperatives--have higher fixed asset turnover ratios.
There is no evidence to suggest that restructuring improves asset turnover ratios.
We also find that buyer firms experience a decline in the return on assets and asset turnover ratios.
Parent and subsidiary firms not affiliated with any keiretsu groups, however, had similar asset turnover ratios.
Circuit City has closed a number of its stores just before its fiscal year end, a practice that could overstate important performance measures such as ROA, asset turnover ratios and same store sales.
On the other hand, the Company will continue to strengthen the strategic alliance with customers, and hope to improve the product profitability as well as asset turnover ratios, which could eventually contribute to a better return on equity (ROE).
Ang, Cole, and Lin (2000) use asset turnover ratios to measure agency costs and find a significant inverse relation with managerial shareholdings.