Asset Turnover


___Net sales divided by total assets. This is a measure of how well assets are being used to produce income. also called total asset turnover,

Net Sales
= --------------------------
Average Total Assets


The asset turnover ratio is an important measure of business efficiency. A relatively high ratio tends to mirror intensive use of assets.
Posted by VM.VENKATESH

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)