The asset turnover ratio compares a company's total average assets to its total sales. The ratio helps investors determine how efficiently a company is using its assets to generate sales. The success ...

Businesses are always eager to know if they are profitable. To stay on top of profitability, they will assess ways to improve efficiency, reduce costs, incentivize employees and optimize operations to ...

The fixed-asset turnover ratio measures the amount of sales a business generates for every dollar invested in fixed assets. The ratio equals net sales divided by average net fixed assets. A high fixed ...

A key part of running a successful small business is using your assets efficiently. The total asset turnover and the capital intensity ratio are two closely related financial ratios that show how well ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Investopedia / Michela Buttignol Annual ...

Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...