asset turnover

[karthikarun]

Measure of operational efficiency. It shows how much revenue is produced per year of asset available to the business.

=sales revenue/total assets current liability

[lavanya]

Asset turnover is typically calculated over an annual basis using either the fiscal or calendar year.

[jeevithakomu]

Asset turnover ratio shows the relationship between net sales & current assets .A high current assets turnover ratio shows that a firm is capable to achieve maximum sales with minimum investment in current assets.

Eg : beginning assets – 50000

end assets –       100000

net sales  –        25000

= 25000/50000+100000/2

[Deepika Nautiyal]

<span style=”background-color: #f5f6f5;”>Asset Turnover ratio is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue and calculated using following formula:-</span>

Asset Turnover = Sales or Revenues / Total Assets

[Vishnu varadhan]

• Asset turnover ratio is the company’s sale of asset.
• It is an efficiency ratio which tells how successfully the company is using its asset to generate revenue.

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