Asset Turnover

Asset Turnover
Asset turnover - An asset turnover is a formula used to determine if a company is using its assets as efficiently as possible to generate maximum profit and or sales.

Asset turnover
The asset turnover ratio is an expansion on the idea of efficient use of capital. It expands this principle to include all assets.

asset turnover investment & finance definition
Net sales divided by average total assets. Asset turnover measures how much each dollar of assets produced in sales.
See asset turnover in Wall Street Words ...

Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.[1] ...

Definition
Asset turnover
Total gross income divided by total assets.
RELATED TERMS ...

Total Asset Turnover Examples
Share
If you look around the web and read books there are a number of ways to calculate the total asset turnover. Funny how a formula which is supposed to be so simple, becomes a bit complicated.

Total Asset Turnover
Quick Definition
Gauges a company's ability in generating sales revenue from all of its investments made in the company.

Asset Turnover Ratio
Asset Turnover is the ratio of net sales divided by total assets.
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The total asset turnover is a means of determining the relationship between the total assets of a company and the net sales produced with those assets.

Operating asset turnover is the ratio of net sales divided by operating assets.
The formula of the ratio is given by:
Operating Asset Turnover= net sales/operating assets.

Asset Turnover
Sales/Total Assets
Asset Turnover tells us roughly how efficient a company is at generating revenue from each dollar/rupee of Assets ...

Asset Turnover - A measure of the sales generating ability of a firm's overall assets. A low asset turnover ratio may indicate that a firm is not generating enough sales to justify its investments.

Asset turnover
The ratio of net sales to total assets.
Asset value
The net market value of a corporation's assets on a per-share basis, not the market value of the shares.

Total Asset Turnover
Measures the activity of the assets and the ability of the business to generate sales through the use of the assets.
Formula
Net Sales
Average Total Assets ...

Asset Turnover tells us roughly how efficient a company is at generating revenue from each dollar/rupee of Assets
Book Value per share (BV)
(Equity Capital + Reserves & Surplus)/Shares Outstanding ...

Total asset turnover The ratio of net sales to total assets. Total debt to equity ratio A capitalization ratio comparing current liabilities plus long-term debt to shareholders' equity.

total asset turnover This is a figure derived by dividing net sales by total assets. This figure... total assets All current and long-term assets owned by a person, company, or other entity.

= profit margin x asset turnover x equity multiplier
If the asset-to-equity ratio increases, then ROE should go up.

Efficiency Ratios or asset turnover ratios give you an understanding of how effective a company is using their current assets. Receivable turnover, average collection period and inventory turnover are all different types of efficiency rations.

ROE = (Net Profit Margin) x (Asset Turnover) x (Asset / Equity Ratio)
This equation can be further extended into its final form:
ROE = (Net Profits / Sales) x (Sales / Average Assets) x (Average Assets / Average Equity) ...

Activity Ratios: Accounts Receivable Turnover, Inventory Turnover, Total Asset Turnover
Leverage Measures: Debt-Equity Ratios And Fixed-Charge Coverage Ratio
Profitability Ratios: Net Profit Margin, Return On Assets (ROA), Return On Equity (ROE) ...

Simple Return on Equity
Beginners Guide to Financial Ratios
Beginner's Guide to Financial Statements
Calculating Enterprise Value
Return on Equity - DuPont Model
Return on Assets
Asset Turnover Ratio
Current Ratio ...

Return on Investment (ROI): Calculated by dividing the corporation's net profit after taxes by total assets, or by multiplying net profit margin by total asset turnover.

Asset turnoverThe ratio of net sales to total assets. At-the-MoneyAn option which has a strike price that is nearest to the underlying futures price.

See also: Turnover, Asset, Sales, Share, Stock