Financial Ratios  Operating Efficiency Ratios
1. Total Asset Turnover
This ratio measures a company's ability to generate sales given its investment in total assets. A ratio of 3 will mean that for every dollar invested in total assets, the company will generate 3 dollars in revenues. Capitalintensive businesses will have a lower total asset turnover than noncapitalintensive businesses.
Formula 7.25
Total asset turnover = net sales Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â average total assets 
2. FixedAsset Turnover
This ratio is similar to total asset turnover; the difference is that only fixed assets are taken into account.
Formula 7.26
Fixedasset turnover = net salesÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â average net fixed assets 
3. Equity Turnover
This ratio measures a company's ability to generate sales given its investment in total equity (common shareholders and preferred stockholders). A ratio of 3 will mean that for every dollar invested in total equity, the company will generate 3 dollars in revenues.
Formula 7.27
Equity turnover = net salesÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â average total equity 

Economics
Explaining the FixedAsset Turnover Ratio
The fixedasset turnover ratio measures a companyâ€™s ability to generate revenue from its fixed assets. 
Fundamental Analysis
How to Calculate a Turnover Ratio
A turnover ratio measures a mutual fundâ€™s level of trading activity in a given time period, usually a year. 
Investing
Asset Turnover Ratio
Investopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ... 
Markets
Operating Performance Ratios: FixedAsset Turnover
By Richard Loth (Contact  Biography)This ratio is a rough measure of the productivity of a company's fixed assets (property, plant and equipment or PP&E) with respect to generating sales. ... 
Fundamental Analysis
Understanding Activity Ratios
Activity ratios measure how effectively a business uses its assets. 
Investing
Understanding Turnover
Turnover has a number of different, but related, meanings depending on the context in which it is used. Generally, it means the number of times an item is replaced with a new or similar version ... 
Investing Basics
What Is Portfolio Turnover?
Portfolio turnover measures a fundâ€™s percentage of assets that are bought and sold by its manager over a year. 
Professionals
Internal Liquidity Ratios
CFA Level 1  Internal Liquidity Ratios. This topic covers the internal liquidity ratios, providing definitions and formulas for such measures as the current, quick and cash ratios. 
Professionals
Return on Investment Ratios
CFA Level 1  Return on Investment Ratios. Operating profitability looks at two forms of ratios. This section covers the return on investment ratios, such as ROA and ROE. 
Investing
Receivables Turnover Ratio
The receivables turnover ratio is a measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. Learn more about it here.

Asset Turnover Ratio
The amount of sales generated for every dollar's worth of assets ... 
FixedAsset Turnover Ratio
A financial ratio of net sales to fixed assets. The fixedasset ... 
Overall Turnover
A synonym for total revenues, commonly used in Europe and Asia. ... 
Receivables Turnover Ratio
An accounting measure used to quantify a firm's effectiveness ... 
Turnover Ratio
The percentage of a mutual fund or other investment vehicle's ... 
Efficiency Ratio
Ratios that are typically used to analyze how well a company ...

Which financial ratios are considered to be efficiency ratios?
Learn about efficiency ratios, what financial ratios are considered efficiency ratios, and how to calculate three different ... Read Answer >> 
How is asset turnover calculated?
Learn what the asset turnover ratio is, how it can be used to compare companies in the same sector, and how the ratio is ... Read Answer >> 
How can a company raise its asset turnover ratio?
Find out more about the asset turnover ratio, what it measures, how to calculate the ratio and how a company could increase ... Read Answer >> 
When is it useful to look at a company's fixed asset turnover ratio?
Understand when it is useful to look at a company's fixed asset turnover ratio, and learn which industries are best suited ... Read Answer >> 
What is considered to be a good fixed asset turnover ratio?
Learn what the fixed asset turnover ratio is, how the ratio is calculated and how the fixed asset turnover ratio can be used ... Read Answer >> 
How can a mutual fund raise or lower its turnover ratio?
Find out how a fund manager can raise or lower a fund's turnover ratio, including how to interpret this metric and what it ... Read Answer >>