Total assets turnover ratio
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Total assets turnover ratio (or, simply, total assets turnover) is a ratio that measures the turnover of all the firm's assets; it is calculated by dividing sales by total assets.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Total assets turnover ratio. Measures the turnover of all the firm's assets; it is calculated by dividing sales by total assets.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Total assets turnover ratio. This ratio is calculated by dividing sales by total assets. It measures how effectively the firm uses its total assets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.