SALES TO TOTAL ASSETS

Sales to Total Assets or the Assets Turnover ratio measures the firm's efficiency at using its assets in generating sales or revenue; the higher the number the better. It also indicates pricing stratergy; companies with low profit margins tend to have high asset turnover; those with high profit margins have low assets turnover. It is important to compare your perfomance with peers on this ratio; should your score be higher this means your sales department is efficient or you may be discounting more You are adviced to refer to the Gross Profit Margin ratio.