Asset Turnover

    Asset Turnover Ratio

    Efficiency Ratios

    Measures how efficiently a company uses its assets to generate revenue. Higher ratio indicates better efficiency.

    Formula

    Asset Turnover = Total Revenue / Average Total Assets

    Why it matters

    Retail and trading companies have high turnover; capital-intensive industries have lower. Combine with margins for full picture.

    Indian example

    Related terms

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    Efficiency Ratios