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Investment Dictionary


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Total Assets Turnover Ratio

 

Total assets turnover ratio shows how much of sales company’s assets are generating. If the company has a lot invested in assets, but do not generate a lot of sales from those assets, it may show some inefficiency in capital usage. 

 

The asset turnover ratio may be used only for comparison of very similar businesses; for wider comparison of asset utilization effectiveness better ratio is ROA.

 

Total assets turnover ratio calculation

Total assets turnover ratio = Sales / Total assets  

 

 

 






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