Measures the value of a company's sales or revenues generated relative to the value of its assets.
Formula: Asset Turnover = Revenue / Total Assets (pass the average of opening and closing assets if you have both)
How to read it: ≥ 1.0 = efficient · 0.5–1.0 = moderate · < 0.5 = low. Retailers run well above 1; utilities and telecoms well below. Compare within a sector.
Often used comparatively within the same industry to see which management team extracts the most value from their property and equipment.