Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference

Home > QFINANCE Dictionary > Definition of asset turnover

Definition of

asset turnover

Accounting

measure of firm's business efficiency the ratio of a company's sales revenue to its total assets, used as a measure of the firm's business efficiency

Recommended Further Reading (Term count)
  • Asset Utilization
    How efficiently an organization uses its resources and, in turn, the effectiveness of the organization’s managers.
  • Factoring and Invoice Discounting: Working Capital Management Options
    by Irena Jindrichovska
    Factoring is provided by financial institutions, for example banks and individual factoring brokers. It is a form of asset-based financing, where the factor provides funding based upon the values of a borrower’s accounts receivable, i.e. corporate debtors. The receivables are purchased by the factor rather than used as collateral for a loan. This means that the ownership of receivables shifts from the seller to the factor. Factoring generally...
  • Asset Turnover
    The amount of sales generated for every dollar’s worth of assets over a given period.
  • Creating Value with EVA
    by S. David Young
    The value-based management movement is based on two assumptions. The first is that the main aim of any business in a market economy is to maximize shareholder value. The second is that markets are too competitive for companies to create such value by accident. They must plan for it. And that means having the right culture, systems, and processes in place so managers make decisions in ways that deliver better returns to shareholders.At the very...

Definitions of ’asset turnover’ and meaning of ’asset turnover’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’asset turnover’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top