the turnover rate of total assets is an important indicator to measure the operational efficiency of an enterprise, which reflects the number of times that the total assets of an enterprise can be turned over in a certain period. Generally speaking, the normal value range of the total assets turnover rate is between 1 and 2, but this range is not absolute, because there are great differences in the total assets turnover rate of different industries and enterprises.
For some light asset industries, such as Internet and science and technology industries, the total asset turnover rate is usually high, because these enterprises have relatively few fixed assets and relatively more current assets, such as inventory and accounts receivable, so the total asset turnover rate will also increase accordingly. In addition, some high-efficiency enterprises, such as retail and catering industries, may have a higher total asset turnover rate than the general level because of their proper operation mode and process optimization.
however, for some industries with heavy assets, such as manufacturing and real estate, the total asset turnover rate is usually low, because these enterprises have more fixed assets and relatively less current assets, so the total asset turnover rate will be reduced accordingly. In addition, some inefficient enterprises may also have a total asset turnover rate below 1.
Different users of statements have different purposes to measure and analyze the efficiency of asset utilization:
1. Shareholders can judge the financial security and profitability of assets through the analysis of asset utilization efficiency, so as to make corresponding investment decisions.
2. By analyzing the efficiency of asset utilization, creditors can help to identify the degree of material security or security of their claims, so as to make corresponding credit decisions.
3. Managers can find idle assets and underutilized assets through the analysis of asset utilization efficiency, so as to dispose of idle assets to save money or improve asset utilization efficiency to improve business performance.
to sum up, when judging the normal range of total assets turnover rate, we need to consider the industry characteristics, business model, market environment and other factors of the enterprise. At the same time, it is necessary to analyze other financial indicators, such as asset-liability ratio and net interest rate, in order to fully understand the financial situation and operating results of the enterprise.
Legal basis:
Article 125 of the Company Law
The capital of a joint stock limited company is divided into shares, and the amount of each share is equal. The shares of the company take the form of shares. A stock is a certificate issued by a company to prove the shares held by shareholders.
Article 127
The issue price of a stock may be at or above the par value, but it shall not be lower than the par value.
Article 144
The shares of listed companies shall be listed and traded in accordance with relevant laws, administrative regulations and trading rules of stock exchanges.
Article 145
A listed company must disclose its financial status, business operations and major lawsuits in accordance with the provisions of laws and administrative regulations, and publish its financial and accounting reports once every six months in each fiscal year.