Asset turnover ratio

A ratio of sales to total asset of an entity. Assets turnover ratio represents how efficiently a company uses its assets to generate sales revenue

Formula for asset turnover ratio

     Total Assets Turnover = --------------------
                                         Total Assets


Sales of a company = $4000

Total assets = $12000

                                      = ------------   =  0.333 times
For every dollar in assets, company  generated $0.333 in sales.