Definitions for "Total Asset Turnover" Add To Word List
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Net sales divided by total assets. This is a measure of how well assets are...
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measures management's efficiency in managing all of a firm's assets - specifically the generation of revenues from the firm's total investments in assets. This ratio is extremely important in high asset firms such as manufactures and telecommunications companies. Generally, the higher this ratio as compared to like companies or the industry:· the smaller the investment required to generate sales, thus the more profitable the firm. · indicates the firm has less money tied up in fixed assets for each dollar of sales revenue.
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same as asset turnover
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Net sales divided by the average balance sheet total.
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A financial ratio that measures how efficiently a company has used its total assets to generate revenues.
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See Summary of financial ratios.
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The ratio of net sales to total assets.
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Total asset turnover is used to determine how much sales revenue a company generates from its investment in assets.
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