FINOVIEW

Asset turnover

#26
GUIDING QUESTION

How fast do you turn assets into sales?

Overall productivity of resources.

01.What it is

Relationship between sales and total assets: how many euros you sell for each euro invested.

02.Component masses

  • Sales
  • Total assets

03.Formula

MAIN FORMULA
Asset turnover: Sales ÷ Total assets(times/year)

04.Related to

  • DuPont
  • Cash conversion cycle
  • Margins