Total asset turnover ratio (SM.TotalAsset_Turnover)

Total asset turnover ratio (SM.TotalAsset_Turnover) can be defined as revenue divided by average total assets for this and previous period. This ratio helps evaluate a company’s efficiency at deploying its capital compared to sector peers. The higher the turnover ratio the better.

It can be shown as- “ Revenue (SM.Revenue) / Avg of Total Assets (SF.BS.TotalAssets) of current and previous period”.