Financial Ratios

Asset Turnover

Definition

What is Asset Turnover?

Revenue divided by average total assetsThe sum of resources controlled by an entity that are expected to provide economic benefits..

Example in practice

How This Looks in Practice

₦10 billion sales on ₦5 billion assets gives two-times asset turnover.

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Related Terms

Financial Ratios

Gross Margin

Gross profit expressed as a percentage of revenue.

Financial Ratios

Operating Margin

Operating profit expressed as a percentage of revenue.

Financial Ratios

EBITDA Margin

EBITDA expressed as a percentage of revenue.

Equity Valuation

Earnings Per Share

Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

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