Series 79: Asset Turnover Ratio

Taken from our Series 79 Top-off Online Guide

Asset Turnover Ratio

A company’s asset turnover ratio measures its ability to use its assets to generate revenue. The ratio is usually expressed in dollars and indicates how much revenue is produced in a given time period (typically a year) for every dollar of assets a company owns. If a company has a high asset turnover ratio for its industry, this fact suggests the company is deploying its assets relatively efficien

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