You are on page 1of 2

New start-ups may take time to generate significant sales, therefore track the quarterly or

yearly trend of the figure. A rising asset turnover ratio over time shows assets are being
utilized more effectively. Asset turnover, or sales-to-asset ratio, shows how efficiently your
company is converting its assets into sales. Find your company's sales on the income
statement and divide it by total assets from the balance sheet. The higher the ratio the
better; a reading of one or higher indicates the company is generating more than $1 in sales
for each $1 in assets. New start-ups may take time to generate significant sales, therefore
track the quarterly or yearly trend of the figure. A rising asset turnover ratio over time
shows assets are being utilized more effectively. Asset turnover, or sales-to-asset ratio,
shows how efficiently your company is converting its assets into sales. Find your company's
sales on the income statement and divide it by total assets from the balance sheet. The
higher the ratio the better; a reading of one or higher indicates the company is generating
more than $1 in sales for each $1 in assets. New start-ups may take time to generate
significant sales, therefore track the quarterly or yearly trend of the figure. A rising asset
turnover ratio over time shows assets are being utilized more effectively.

. A rising asset turnover ratio over time shows assets are being utilized more effectively.
Asset turnover, or sales-to-asset ratio, shows how efficiently your company is converting its
assets into sales. Find your company's sales on the income statement and divide it by total
assets from the balance sheet. The higher the ratio the better; a reading of one or higher
indicates the company is generating more than $1 in sales for each $1 in assets. New start-
ups may take time to generate significant sales, therefore track the quarterly or yearly
trend of the figure. A rising asset turnover ratio over time shows assets are being utilized
more effectively. Asset turnover, or sales-to-asset ratio, shows how efficiently your
company is converting its assets into sales. Find your company's sales on the income
statement and divide it by total assets from the balance sheet. The higher the ratio the
better; a reading of one or higher indicates the company is generating more than $1 in sales
for each $1 in assets. New start-ups may take time to generate significant sales, therefore
track the quarterly or yearly trend of the figure. A rising asset turnover ratio over time
shows assets are being utilized more effectively. Asset turnover, or sales-to-asset ratio,
shows how efficiently your company is converting its assets into sales. Find your company's
sales on the income statement and divide it by total assets from the balance sheet. The
higher the ratio the better; a reading of one or higher indicates the company is generating
more than $1 in sales for each $1 in assets. New start-ups may take time to generate
significant sales, therefore track the quarterly or yearly trend of the figure. A rising asset
turnover ratio over time shows assets are being utilized more effectively. Asset turnover, or
sales-to-asset ratio, shows how efficiently your company is converting its assets into sales.
Find your company's sales on the income statement and divide it by total assets from the
balance sheet. The higher the ratio the better; a reading of one or higher indicates the
company is generating more than $1 in sales for each $1 in assets. New start-ups may take
time to generate significant sales, therefore track the quarterly or yearly trend of the
figure. A rising asset turnover ratio over time shows assets are being utilized more
effectively.
The Bottom Line these calculations demonstrate that time literally is money - the value of the
money you have now is not the same as it will be in the future and vice versa. So, it is important
to know how to calculate the time value of money so that you can distinguish between the worth
of investments that offer you returns at different times. Asset turnover, or sales-to-asset ratio,
shows how efficiently your company is converting its assets into sales. Find your company's sales on
the income statement and divide it by total assets from the balance sheet. The higher the ratio the
better; a reading of one or higher indicates the company is generating more than $1 in sales for each
$1 in assets. New start-ups may take time to generate significant sales, therefore track the quarterly
or yearly trend of the figure. A rising asset turnover ratio over time shows assets are being utilized
more effectively. Asset turnover, or sales-to-asset ratio, shows how efficiently your company is
converting its assets into sales. Find your company's sales on the income statement and divide it by
total assets from the balance sheet. The higher the ratio the better; a reading of one or higher
indicates the company is generating more than $1 in sales for each $1 in assets. New start-ups may
take time to generate significant sales, therefore track the quarterly or yearly trend of the figure. A
rising asset turnover ratio over time shows assets are being utilized more effectively. Asset turnover,
or sales-to-asset ratio, shows how efficiently your company is converting its assets into sales. Find
your company's sales on the income statement and divide it by total assets from the balance sheet.
The higher the ratio the better; a reading of one or higher indicates the company is generating more
than $1 in sales for each $1 in assets. New start-ups may take time to generate significant sales,
therefore track the quarterly or yearly trend of the figure. A rising asset turnover ratio over time
shows assets are being utilized more effectively. Asset turnover, or sales-to-asset ratio, shows how
efficiently your company is converting its assets into sales. Find your company's sales on the income
statement and divide it by total assets from the balance sheet. The higher the ratio the better; a
reading of one or higher indicates the company is generating more than $1 in sales for each $1 in
assets. New start-ups may take time to generate significant sales, therefore track the quarterly or
yearly trend of the figure. A rising asset turnover ratio over time shows assets are being utilized more
effectively. Asset turnover, or sales-to-asset ratio, shows how efficiently your company is converting
its assets into sales. Find your company's sales on the income statement and divide it by total assets
from the balance sheet. The higher the ratio the better; a reading of one or higher indicates the
company is generating more than $1 in sales for each $1 in assets. New start-ups may take time to
generate significant sales, therefore track the quarterly or yearly trend of the figure. A rising asset
turnover ratio over time shows assets are being utilized more effectively.

You might also like