A financial health indicator that measures the efficiency with which a company uses its assets to produce sales. The asset turnover ratio calculated by total revenues by the total or average assets (i.e. average of assets at the beginning of the period and at the end of the period). This ratio varies by industry and depends on the capital intensity of the industry. Classified as an activity ratio, of a company, a company with a high asset turnover ratio operates more efficiently as compared to competitors with a lower ratio.
