Home / Glossary / Asset Turnover

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}}