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How can asset turnover be defined in simple terms?

Updated: 8/20/2019
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11y ago

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Asset turnover is the ratio of a company's net sales to their total assets. It can be used to measure how efficiently the company is using its assets to increase sales: a high ratio indicates efficiency, whereas a low ratio indicates inefficiency. It can be calculated by dividing the amount of sales by the company's assets.

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Q: How can asset turnover be defined in simple terms?
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