The decline in the turnover rate of total assets shows that the sales ability of enterprises is weak, the investment benefit of assets is not good, and the utilization efficiency of assets is low. The turnover rate of total assets is an important index to examine the efficiency of enterprise assets management, which reflects the flow speed of all assets from input to output during the operation period of an enterprise, and reflects the management quality and utilization efficiency of all assets of an enterprise.
Through the comparative analysis of this index, we can reflect the operating efficiency and changes of the total assets of enterprises in this year and previous years, find the gap between enterprises and similar enterprises in asset utilization, promote enterprises to tap their potential, actively generate income, improve product market share and improve asset utilization efficiency. Generally, the higher this value, the faster the turnover rate of total assets of enterprises. The stronger the sales ability, the higher the efficiency of asset utilization.
Definition and formula of total assets turnover rate
The turnover rate of total assets is the ratio of net sales income to average total assets in a certain period, and it is an index to measure the ratio of asset investment scale to sales level.
Total assets turnover rate (times) = net operating income/average total assets
Average total assets = (total assets at the beginning of the year+total assets at the end of the year) /2
Total assets turnover days = 360 total assets turnover times