meaning of asset turnover ratio

asset turnover ratio meaning in Law Dictionary

how good a strong utilizes its asset generate earnings. The greater the proportion the higher. Each type of asset is determined including money to product sales, stock to sales, and fixed assets to product sales. The ratio is named money strength.

asset turnover ratio meaning in Business Dictionary

suggests exactly how effective a firm is in making use of its possessions in generation of sales revenue. Increased ratio is considered desirable, exactly what is recognized as high in one industry could be reduced for the next. Investment turnover ratios tend to be computed for certain assets, including 'cash to sales' (cash ÷ product sales income), 'inventory to sales' (value of inventory ÷ product sales revenue), 'fixed assets to product sales' (fixed assets ÷ sales income). When calculated as complete 'assets-to-sales' ratio (total possessions ÷ sales revenue), its called capital power.