Asset Turnover

Fixed Asset Turnover = Turnover / Total Assets

  • It shows how effective the business is in generating sales compared to the amount invested in net assets.
  • That is, it expresses the contribution of fixed assets to achieving turnover.
  • The higher the ratio, the better the organization and exploitation of fixed assets.

Business actions to improve the Index

  • Increase Turnover
  • Reduce Total Assets by liquidating unnecessary assets