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
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by Asset Turnover Ratio.
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