Assets Turnover
Assets Turnover = Turnover/Total Assets
The Assets Turnover shows the relationship between the company's turnover and total assets.
This key figure shows the rate at which the assets are traded. The key figure is used to see how efficiently the company uses its assets.
A high value is good; as an investor, you want the company to be able to efficiently convert its turnover into assets. A low value can show that the company has problems increasing its assets.
Things to keep in mind
- A high value is positive.
- Assets Turnover rate = 3 shows that the company's Assets are converted three times within the company.