![]() This tells us about how efficiently a company is utilizing its assets to generate sales. It measures a company’s ability to generate sales from its assets by comparing net sales with total assets. Watch the video below on Everything you want to know about Asset Turnover Ratio:Īsset Turnover ratio measures the efficiency of a company. The asset turnover ratio can be used as an indicator of the efficiency with which a company is using its assets to generate revenue. The Asset Turnover ratio measures the value of a company’s sales or revenues relative to the value of its assets. We will discuss about the impact of turnover ratio. used for valuation analysis of a company. There are a lot of ratios such as PE ratio, Net profit margin, interest coverage ratio etc. Financial ratios help in deciding the valuation strength of the company. A financial ratio is a representation of selected numerical values from a company’s financial statements. Any ratios are important in their own manner for different kind of Financial analysis.
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