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          • Term
            • asset turnover ratio
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          • Definition(s)
            • Asset turnover ratio is the ratio between the value of a company’s sales or revenues and the value of its assets. It is an indicator of the efficiency with which a company is deploying its assets to produce the revenue. Thus, asset turnover ratio can be a determinant of a company’s performance. The higher the ratio, the better is the company’s performance. The Economic Times
          • Example sentence(s)
            • If you want to boost your total asset turnover ratio, you should look for ways to boost your net sales - GoCardless by
            • A company may attempt to raise a low asset turnover ratio by diligently stocking its shelves with salable items, replenishing inventory only when necessary, and augmenting its hours of operation to increase customer foot traffic and spike sales. - Investopedia by
            • If you see your company's asset turnover ratio declining over time but your revenue is consistent or even increasing, it could be a sign that you've "overinvested" in assets. - Small Business by
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