Asset turnover
Also called: asset turnover ratio
Revenue divided by average total assets, showing how much revenue each rupee of assets produces.
Retailers and distributors often turn over their assets two or three times a year; utilities and heavy industry may produce less than half a rupee of revenue per rupee of assets. Compare asset turnover within an industry.
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- Return on assetsWhat does return on assets tell you, and when is it the right measure?
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