Asset Turnover Ratio or total asset turnover shows how efficiently a company uses its assets. The higher the indicator is, the more efficiently the assets are used.
$$Asset\; Turnover \mmlToken{mo}[linebreak="auto"]{=} \frac{Net\; Sales}{Average\; Assets}$$
Net Sales (Net sales) is taken from the income statement for the reporting period under review.
Average Assets is the average total assets for the period under review, which can be found, for example, by dividing the total assets at the beginning and end of the period by two.
Generally, companies with high profit margins have a low asset turnover ratio, while companies with low profit margins have a high asset turnover ratio.
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