Total Asset Turnover Ratio
Total asset turnover is an overall activity ratio relating total sales to average total assets:
Total Asset Turnover = | Sales |
Average Total Assets |
The total asset turnover ratio measures the amount of sales revenue the company is generating from the use of each currency unit it has in average total assets. The total asset turnover ratio provides a means of measuring the overall efficiency of the company’s use of all its investments, including both current assets and non-current assets.