What is a generally good asset turnover rate?

If the total asset turnover rate is generally 80%, it is more appropriate. The higher the asset turnover rate, the more efficient the use of the company's assets. High, and the asset turnover rate includes: current asset turnover rate, inventory turnover rate, fixed asset turnover rate, and total asset turnover rate.

Supplementary information:

The total asset turnover rate is the ratio of the company’s net sales revenue to the average total assets in a certain period. The total asset turnover indicator is used Measures a company's ability to use its assets to earn profits. It is often used together with indicators that reflect profitability, such as the turnover rate of total assets. The faster the turnover, the stronger the sales ability. Enterprises can adopt the method of small profits but quick turnover to accelerate asset turnover and increase the absolute amount of profits. Through the comparative analysis of this indicator, it can reflect the operating efficiency and changes of the company's total assets in this year and previous years, discover the gap in asset utilization between the company and similar companies, and promote the company to tap its potential, increase product market share, and improve asset utilization efficiency. , Generally speaking, the higher the value, the faster the company's total asset turnover. The stronger the ability, the higher the efficiency.

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