Business and Personal Finance Dictionary

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• TOTAL ASSET TURNOVER
  
  measures management's efficiency in managing all of a firm’s assets - specifically the generation of revenues from the firm's total investments in assets. This ratio is extremely important in high asset firms such as manufactures and telecommunications companies. Generally, the higher this ratio as compared to like companies or the industry: the smaller the investment required to generate sales, thus the more profitable the firm. indicates the firm has less money tied up in fixed assets for each dollar of sales revenue.
  
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