The total asset turnover rate reflects the asset operating efficiency capability.

The total asset turnover rate is the ratio of an enterprise's net sales revenue to its average total assets in a certain period. It is an indicator that measures the ratio between the scale of asset investment and the level of sales.

When using total asset turnover rate analysis to evaluate asset usage efficiency, it should also be analyzed together with sales profits. Non-current assets in total assets should be calculated and analyzed. The higher the total asset turnover rate, the stronger the company's sales ability and the better the efficiency of asset investment.

The total asset turnover rate is an important indicator to examine the efficiency of an enterprise's asset operations. It reflects the flow rate of all assets from input to output during the operation of the enterprise, and reflects the management quality and utilization efficiency of all the assets of the enterprise. . Through 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 enterprises and similar enterprises, and encourage enterprises to tap their potential, actively generate income, increase product market share, and improve asset utilization efficiency. Generally speaking, the higher the value, the greater the total number of enterprises. The faster the asset turnover rate. The stronger the sales ability, the higher the efficiency of asset utilization.

Different statement users have different purposes for measuring and analyzing asset utilization efficiency

1. Shareholders can help judge the financial security of the company and the return on assets through the analysis of asset utilization efficiency. ability to make appropriate investment decisions.

2. Creditors can help determine the degree of material protection or safety of their claims through asset utilization efficiency analysis, so as to make corresponding credit decisions.

3. Through the analysis of asset utilization efficiency, managers can discover idle assets and underutilized assets, and then deal with idle assets to save money, or improve asset utilization efficiency to improve business performance.