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Asset Turnover

Revenue divided by total assets.

Asset turnover measures how efficiently a company generates revenue from its asset base. Higher turnover indicates more productive use of assets. It is one of the components of the DuPont decomposition of ROE (margin x turnover x leverage).

Formula
Asset Turnover=RevenueTotal Assets\text{Asset Turnover} = \frac{\text{Revenue}}{\text{Total Assets}}
Related Terms

Return on Assets (ROA)

Net income divided by total assets.

Market Capitalization

Share price multiplied by shares outstanding — the total equity value.

Enterprise Value (EV)

Market cap plus net debt — the total acquisition value of the business.

P/E Ratio

Share price divided by earnings per share — how much you pay per dollar of profit.

EV/EBITDA

Enterprise value divided by EBITDA — a capital-structure-neutral valuation metric.

EV/FCF

Enterprise value divided by free cash flow (TTM).