total asset turnover


Also found in: Wikipedia.

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 ?
This research has analysis of impacts of Profit Margins (PM), Total Asset Turnover (TAT) and Equity Multiplier (EM) on Return on Equity (ROE).
The liquidity variable is proxied by the use of the current ratio and the total asset turnover ratio, whereas the solvency variable is proxied by the use of fixed assets to stockholders equity and long-term debt to equity.
ROE (DuPont) = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)
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 median values of inventory turnover, receivables turnover, and total asset turnover are 1.
The total asset turnover ratio (revenue/total assets) is also affected by the method applied, falling from 1.
We will analyze Total asset turnover by running these two applications in TM4L Viewer.
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).

Full browser ?