Total assets to sales ratio

Total assets to sales ratio,

Definition of Total assets to sales ratio:

  1. A measure of a companys efficiency in managing its assets in relation to the revenue generated. The higher this ratio, the smaller the investment required to generate sales revenue and, therefore, the higher the profitability of the company. Also called total assets turnover. Formula: Sales revenue ÷ Total assets.

Meaning of Total assets to sales ratio & Total assets to sales ratio Definition