The Asset Turnover Ratio Explained

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=ucpM70nvOF4

The asset turnover ratio measures the value of revenue generated by a business relative to its average total assets for a given fiscal or calendar year. This video explains how to calculate the ratio using total sales revenue and total or net assets. We also discuss what this ratio reveals about a company's operational performance and how to benchmark it against industry averages. • Learn: • How this metric reflects a company's efficiency. • The formula for calculating the asset turnover ratio. • How to use this ratio for trend analysis and benchmarking. • This video is for people who want to improve their financial analysis skills or gain insights into evaluating business performance. You can learn more about this topic here: https://corporatefinanceinstitute.com... • If you want to learn more about specific aspects of efficiency, watch this video next: • Inventory Efficiency Ratios: Turnover... , where we explore how quickly companies turn inventory into sales and how it impacts overall asset utilization. • Understanding these metrics complements the insights from the asset turnover ratio and gives you a more comprehensive view of operational performance. • #Asset #Turnover #Ratio

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