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Income Statement, Balance SheetFormula
Asset Turnover Ratio = Sales / Average Total AssetsMeaning
Like return on assets (ROA), the asset turnover ratio tells you how good the company is at using its assets to make products to sell. For example, if Company A reported $100,000 of sales and owns $50,000 in assets, its asset turnover ratio is 2x. For ever $1 of assets it owns, it can generate $2 in sales each year.
Muhammad Haroon Zafar