Asset Turnover

Sales generated per rupee of assets.

Asset turnover measures how efficiently a company uses its assets to generate sales. A high turnover means the company squeezes a lot of revenue from its asset base. Asset turnover = Revenue ÷ Total assets Revenue Rs 500 crore, assets Rs 250 crore. Turnover = 2. Two rupees of sales per rupee of assets. Reveals asset efficiency Explains part of ROA Good across time Very industry-specific Asset values can be stale High turnover can mean low margins

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Ratios.