Posted inAll sectors / Finance & Control / Financial

Asset Turnover Ratio

Definition of this KPI:
The Asset Turnover Ratio is a financial metric that assesses a company's efficiency in utilizing its assets to generate revenue. It measures how effectively a company's assets, both short-term and long-term, contribute to its overall sales.


  • This KPI can be calculated as: Total revenue / average total assets
  • The KPI will be measured as: ratio (number)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Financial stability
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