The asset turnover ratio compares a company's total average assets to its total sales. The ratio helps investors determine how efficiently a company is using its assets to generate sales.

Assume company Zander has the following numbers: Average total Assets = ($40,000 + $80,000) ÷ 2 = $60,000 Asset turnover ratio = $125,00 ÷ $60,000 = 2 Zander generates an asset turnover ratio of ...

Total assets turnover is a ratio that relates the amount of sales generated for every unit of asset. The ratio can be useful in measuring how efficient a firm, as well as helping better leverage ...

The total asset ratio is properly interpreted when compared to a company's past performance. A higher total asset turnover ratio is more favorable than a lower one.

Time period – 1 year Net sales over 1 year – $250,000 Total assets at start of year – $190,000 Total assets at end of year – $202,000 ...