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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 ...
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.
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 ...
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 ...
VITL, GOLF, TCBI and CBSH top a screen for strong efficiency ratios and earnings surprise amid market volatility.
Asset Turnover Ratio = Net Sales / Average Total Assets A higher asset turnover ratio suggests that a company effectively uses its assets to drive revenue, reflecting strong operational performance.
Asset turnover ratios can be used for specific assets such as cash to sales, inventory to sales or fixed assets to sales. This definition is for general information purposes only ...
Asset turnover is a ratio that measures how efficiently a company uses its assets to generate sales. It's simply a company's revenue divided by its average total assets, and it's usually computed ...
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