total assets to sales ratio |
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Definition
Measure of a firm's efficiency in managing its assets in relation to the revenue generated. Higher this ratio, the smaller the investment required to generate sales revenue and, therefore, higher profitability of the firm. Also called total assets turnover. Formula: Sales revenue ÷ Total assets.
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total assets to sales ratio is in the Accounting & Auditing and Advertising, Marketing, & Sales subjects.
total assets to sales ratio appears in the definition of the following term: total asset turnover
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