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 Sector

See how asset turnover ratio varies across Indian market sectors:

Learn More in the Academy

Find Stocks Using This Metric

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

Open Stock Screener →