# What is a Total Asset Turnover?

Total asset turnover is the ratio of a company's net sales revenue to the average total assets in a certain period of time.

# Total asset turnover

- Total asset turnover is the ratio of a company's net sales revenue to the average total assets in a certain period of time.

- When using total asset turnover analysis to evaluate the efficiency of asset use, it must also be analyzed in conjunction with sales profits. The non-current assets in the total assets shall be calculated and analyzed. The higher the total asset turnover rate, the stronger the company's sales capacity, and the better the benefits of asset investment.

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- The total asset turnover rate reflects the overall assets of the company.

- The numerator in the total asset turnover rate formula refers to the net sales amount after discounts and discounts. It is the income obtained by the company from operating activities.

- Net income; and the denominator refers to the sum of all assets of the enterprise, including current assets, long-term equity investments, fixed assets, intangible assets

- Wait. As we all know, foreign investment in total assets should bring investment gains and losses to enterprises, which cannot form sales income. visible

- The numerator and denominator in the formula are inconsistent, which leads to the inconsistency of the asset structure between different periods and between different companies

- The same loses comparability.