The turnover rate of total assets refers to the ratio of net operating income to average total assets in a certain period of time. The turnover rate of total assets is an important index to comprehensively evaluate the management quality and utilization efficiency of all assets of an enterprise. The greater the turnover rate, the faster the total assets turnover, reflecting the stronger the sales ability. Enterprises can speed up the turnover of assets and increase the absolute amount of profits by means of small profits but quick turnover.

When analyzing the driving factors of asset turnover, we can usually use "asset turnover days" or "asset income ratio" instead of "asset turnover times".

The general formula of asset turnover rate is:

Asset turnover rate = turnover/assets

Or: asset turnover rate = total income)/total assets.

Or: asset turnover rate = current net sales income/current average balance of total assets.

These include:

Average balance of total assets in the current period = (total assets opening balance+total assets ending balance) /2

Asset turnover can be divided into three categories: total assets turnover, classified assets turnover (current assets turnover and fixed assets turnover) and single assets turnover (accounts receivable turnover and inventory turnover). ).

Different report users have different purposes to measure and analyze the efficiency of asset utilization:

1. The analysis of the utilization efficiency of shareholders' assets is helpful to judge the financial security of enterprises and the profitability of assets, so as to make corresponding investment decisions.

2. By analyzing the efficiency of asset utilization, creditors can identify the degree of material security or security of their claims and make corresponding credit decisions.

3. Managers can find idle assets and underutilized assets through the analysis of asset utilization efficiency, so as to deal with idle assets to save money or improve asset utilization efficiency to improve business performance.