What Does Asset Turnover Mean?
The amount of sales generated for everydollar’s worth of assets; it is calculated by dividing sales in dollars by assets in dollars: Investopedia explains Asset Turnover Asset turnover measures a firm’s efficiency at using its assets in generating sales or revenue; the higher the number, the better. It also reflects pricing strategy; companies with low profit margins tend to have high asset turnover, whereas those with high profit margins have low asset turnover.
