Asset turnover (Asset turns)
How many units of revenue each unit of assets produces in a year.
It is the efficiency half of return on assets, and the eighth Piotroski test watches it.
How it is computed here
Revenue / total assets
Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
- A recent large acquisition depresses it for a year or two with no operational change.
Not meaningful for banks, insurers: the product prints n/m with the reason rather than a number for them.
Questions
How is asset turnover calculated?
Revenue / total assets. Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it.
What does asset turnover tell a value investor?
It is the efficiency half of return on assets, and the eighth Piotroski test watches it.
When does asset turnover mislead?
There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading. A recent large acquisition depresses it for a year or two with no operational change.