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Learn what asset turnover ratio is, the formula, how to calculate it and how it measures a company's efficiency in generating revenue from its assets.
The turnover ratio is usually expressed in percent. For instance, if a fund purchased and sold $5 million in assets and had average assets of $50 million, then the resulting answer of 0.1 is ...
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 ...