Efficiency

What is Asset Turnover Ratio?

Asset turnover measures how efficiently a company uses its assets to generate revenue, higher turnover means more productive asset use.

Formula

Asset Turnover = Revenue ÷ Total Assets

How to Interpret

Asset-light businesses (IT) have high turnover, while capital-heavy businesses (utilities) have low turnover. Compare within the same industry.

Typical Ranges

IT/Services: 1.0-2.0, Retail: 1.5-3.0, Manufacturing: 0.5-1.5

Analyze Asset Turnover Ratio by Indian Market Sector

See how asset turnover ratio varies across major Indian (NSE/BSE) market sectors. US sector benchmarks are summarised in the Typical Ranges section above.

Banking & Financial Services Information Technology Pharmaceuticals & Healthcare FMCG (Fast-Moving Consumer Goods)Automobile & Auto Components Energy & Oil & Gas Infrastructure & Construction Real Estate Telecom Metals & Mining Chemicals & Specialty Chemicals Insurance

Learn More in the Academy

📖

Efficiency RatiosFundamental Analysis

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by Asset Turnover Ratio.

US Stock Screener →Indian Stock Screener →