The total asset turnover is a financial ratio which compares the sales of a company to the asset base. It is an indicator of efficiency with which a company deploys its assets in generating the revenue.
Formula
Net sales ÷ Total assets = Total asset turnover
Example
For example, a business that has net sales of $10,000,000 and total assets of $5,000,000 has a total asset turnover ratio of 2.0.
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