Total assets turnover ratio

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Total assets turnover ratio (or, simply, total assets turnover) is a ratio that measures the turnover of all the firm's assets; it is calculated by dividing sales by total assets.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Total assets turnover ratio. Measures the turnover of all the firm's assets; it is calculated by dividing sales by total assets.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Total assets turnover ratio. This ratio is calculated by dividing sales by total assets. It measures how effectively the firm uses its total assets.

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