Asset turnover ratio
Asset turnover ratio (or, simply, asset turnover) is a ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Asset turnover ratio. A ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
