Monday 23 October 2017

Total Assets Turnover

Total Assets Turnover



This is a very straight forward ratio. It indicates the company’s capability to generate revenues
with the given amount of assets. Here the assets include both the fixed assets as well as current
assets. A higher total asset turnover ratio compared to its historical data and competitor data
means the company is using its assets well to generate more sales.
Total Asset Turnover = Operating Revenue / Average Total Assets
-thanks to zerodha

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