Businesses are always eager to know if they are profitable. To stay on top of profitability, they will assess ways to improve efficiency, reduce costs, incentivize employees and optimize operations to ...

The asset turnover ratio compares a company's total average assets to its total sales. The ratio helps investors determine how efficiently a company is using its assets to generate sales. The success ...

Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Financial ratios help investors determine which businesses to buy into. These ratios also help business leaders discern whether particular strategies are working. While there are dozens of types of ...

In accounting, turnover refers to how quickly a business collects money from customers and sells the inventory it has on hand. Companies use turnover to measure how well they perform and how ...

Assets increase company revenue or reduce expenses, vital for evaluating opportunities. Balance sheets categorize assets as current or non-current, impacting investment analysis. Asset turnover and ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Asset turnover ratio calculates efficiency of asset use to generate sales; formula: Total Sales ÷ Average Assets. Higher asset turnover indicates better capital use and operational efficiency relative ...