Sales to Assets (or Asset Turnover)

Sales to Assets (or Asset Turnover): This ratio addresses the question of:  How efficiently does a company use its assets to produce sales? If a company’s sales are twice its assets, the sales to assets ratio is expressed as 2.0.

The formula for this ratio is: sales annualized / total assets. In FinancialSoft Financial tools the annualized sales is the last 3 month sales multiplied by 4.