Definition: Total Asset Turnover Ratio | Tackle Trading: The #1 rated trading education platform

Total Asset Turnover Ratio

The ratio of net sales to total assets.

Asset turnover ratio is a measure of the value of a company’s sales or revenues generated relative to the value of its assets.

The Asset Turnover is an indication of the efficiency with which a company is deploying capital assets in generating revenue.

Asset Turnover = Sales ÷ Average Total Assets

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