Financial Ratios - Total Assets Turnover
Total Assets Turnover
This is a very straight forward ratio. It indicates the company’s capability to generate revenues with the given amount of assets. Here the assets include both the fixed assets as well as current assets. A higher total asset turnover ratio compared to its historical data and competitor data means the company is using its assets well to generate more sales.
Total Asset Turnover = Operating Revenue / Average Total Assets
-thanks to zerodha
No comments:
Post a Comment