Total Assets Turnover

Total assets turnover ratio is the ratio of the value of a company’s sales or revenue relative to the value of its assets. The Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying its assets in generating revenue. The higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per riyal of assets. Yet, this ratio can vary widely from one industry to the next. Comparisons are only meaningful when they are made for different companies within the same sector.

Calculated as: (Sales/Revenue ÷ Total Assets) x 100.