Learn what asset turnover ratio is, the formula, how to calculate it and how it measures a company's efficiency in generating ...

Operational Performance Ratio Analysis. Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio ...

The performance numbers of a large … Continue reading ->The post How Asset Turnover Ratio Helps Investors appeared first on SmartAsset Blog.

For example, if the inventory-turnover ratio were 5, the inventory period would be 73 (365/5 = 73). This would mean the company kept enough wood on hand to last 73 days.

Assume company Zander has the following numbers: Average total Assets = ($40,000 + $80,000) ÷ 2 = $60,000. Asset turnover ratio = $125,00 ÷ $60,000 = 2 ...