Asset turnover ratio,
Definition of Asset turnover ratio:
Indicates how successful a firm is in utilizing its assets in generation of sales revenue. A high ratio is considered desirable, but what is considered high in one industry may be low for another. Asset turnover ratios are computed for specific assets, such as cash to sales (cash ÷ sales revenue), inventory to sales (value of inventory ÷ sales revenue), fixed assets to sales (fixed assets ÷ sales revenue). When computed as total assets-to-sales ratio (total assets ÷ sales revenue), it is called capital intensity.
The asset turnover ratio measures the value of a company's sales or revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with which a company is using its assets to generate revenue.
The higher the asset turnover ratio, the more efficient a company is at generating revenue from its assets. Conversely, if a company has a low asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.
How to use Asset turnover ratio in a sentence?
- The asset turnover ratio of selling bottled water was greatly superior to the asset turnover ratio involved in selling GPS devices since so much money needed to be allocated to research and development.
- This metric helps investors understand how effectively companies are using their assets to generate sales.
- Asset turnover is the ratio of total sales or revenue to average assets.
- You need to understand the best way to use an asset turnover ratio to the long term advantage of your business.
- A company's asset turnover ratio can be impacted by large asset sales as well as significant asset purchases in a given year.
- Investors use the asset turnover ratio to compare similar companies in the same sector or group.
- We had a very successful asset turnover ratio and that gave us a lot of confidence for what we were doing in the future.
Meaning of Asset turnover ratio & Asset turnover ratio Definition
Asset Turnover Ratio,
What is Asset Turnover Ratio?
Asset Turnover Ratio means: An asset circulation index measures the value of a product compared to the sale of a company or the value of its assets. The asset turnover rate can be used as an indicator of how efficiently a company uses its assets to generate revenue.
- Asset turnover is the ratio of total turnover or average asset turnover.
- This metric helps investors understand how effectively companies are using their assets to sell.
- Investors use asset-to-business ratios to compare similar companies in the same industry or group.
- A company's asset business can be affected by large sales and large asset purchases in a year.
Literal Meanings of Asset Turnover Ratio
Asset:
Meanings of Asset:
A useful or valuable thing, a person or a quality.
Sentences of Asset
Immediate reflexes are your greatest asset
Synonyms of Asset
virtue, value, forte, aid, talent, bonus, resource, help, long suit, beauty, recommendation, boon, blessing, benefit, attractive feature, strong suit, attraction, advantage, strength, gift
Turnover:
Meanings of Turnover:
The amount earned by the company in a given period.
The rate at which employees leave the workforce and take their place.
A muffin that is made by folding a piece of flour on top to cover the sweet filling.
Loss of control of the opposing team (in the game)
Sentences of Turnover
Sales of around 4 million
Too many fluctuations leave the program with many young teachers
The apple nest
Lead the team and be careful to avoid swings.
Synonyms of Turnover
change, rate of replacement, gross revenue, income, revenue, yield, movement, coming and going
Ratio:
Meanings of Ratio:
A quantitative relationship between two quantities that indicates how many times one value is included or whether another quantity is included.
Sentences of Ratio
The male-female employment ratio is 8 to 1
Synonyms of Ratio
comparative number, correspondence, comparative extent, proportion, quantitative relation, balance, correlation, relationship
Asset Turnover Ratio,
Definition of Asset Turnover Ratio:
The definition of Asset Turnover Ratio is: Turnover rate y measures the turnover in relation to a firm's turnover value or its STS value. Quotas and business can be used as an indicator of how effectively a company uses its properties to generate revenue.
- E-sales are the ratio of total sales or average sales to ETS.
- This metric helps investors understand how companies are effectively using their ETS to sell.
- Investors use shares and earnings to compare similar companies in the same industry or group.
- Revenue and business relationships can be affected by large sales and purchases in any given year.
Literal Meanings of Asset Turnover Ratio
Asset:
Meanings of Asset:
Something useful or valuable or person.
Sentences of Asset
Instant anxiety is your strength.
Synonyms of Asset
merit, saving grace, compensating feature, good point, redeeming feature, strong point, plus, selling point
Turnover:
Meanings of Turnover:
The amount earned by the company during the stipulated period.
The rate at which employees leave and are replaced.
Cupcakes made by folding a piece of flour on top for a sweet filling.
Sentences of Turnover
Turnover of about 4 4 million
More fluctuations leave the program with many young teachers.
Synonyms of Turnover
sales, (gross) revenue, volume of business, business
Ratio:
Meanings of Ratio:
A quantitative relationship between two quantities indicates how many times one value contains or is included in another.
Synonyms of Ratio
comparative number/extent, fraction, percentage, quotient
Asset Turnover Ratio,
What is The Definition of Asset Turnover Ratio?
Meaning of Asset Turnover Ratio: Turnover rate y measures a firm's turnover or turnover in relation to its state value. Quotas and billing can be used as an indicator of how effectively a company uses its features to generate revenue.
- And the turnover is the ratio between the total turnover or the average ETS.
- This metric helps investors understand how effectively companies are using their ETS to generate sales.
- Investors use shares and earnings to compare similar companies in the same industry or group.
- Revenue and business relationships can be affected by large sales and purchases in any given year.
Literal Meanings of Asset Turnover Ratio
Turnover:
Meanings of Turnover:
A cupcake that is made by folding a piece of flour on top to cover the sweet filling.
Sentences of Turnover
About 4 million in business
Ratio:
Meanings of Ratio:
A quantitative relationship between two quantities that indicates how many times one value contains or includes the other.
Asset Turnover Ratio
Turnover is the relationship between the value of a company's sales or income and the value of its assets. It is a measure of how effectively a company uses its assets to generate revenue. Therefore, asset turnover can be a critical factor in a company's performance. The higher this ratio, the higher the productivity of the company. Asset turnover rates can vary from company to company. It is usually calculated annually for a particular fiscal year.