Asset turnover

Revenue per dollar of total assets.

Formula

Asset turnover = Revenue ÷ Total assets

How to read it

Higher means the business does more with its capital; the quality grade scores 0.2× worst and 1.4× best. Retailers run high, utilities low.

How to use it

Compare with peers in the same industry to see which business runs leaner.

Also called: capital efficiency.

Related terms

The whole glossary · Investing tools