---
title: "Definition of Asset Turn"
url: https://signalscreener.fr/definition/asset-turnover/
markdown_url: https://signalscreener.fr/definition/asset-turnover.md
description: "Measures how efficiently a company uses its assets to generate revenue."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Asset Turn"
  - "Asset Turnover"
translations:
  de: https://signalscreener.fr/de/definition/asset-turnover.md
  es: https://signalscreener.fr/es/definition/asset-turnover.md
  fr: https://signalscreener.fr/fr/definition/asset-turnover.md
  pt: https://signalscreener.fr/pt/definition/asset-turnover.md
---

# Asset Turnover

## What is Asset Turn?

Measures how efficiently a company uses its assets to generate revenue.

## Think of it like this

Like measuring how many times you can use your car to make deliveries - more trips per car means more efficient use.

## Formula

```
Asset Turnover = Revenue ÷ Average Total Assets
```

- **Revenue**: Annual sales
- **Average Total Assets**: (Beginning + Ending Assets) ÷ 2

## Why it matters

- Shows efficiency of asset utilization
- Higher turnover = more efficient
- Component of DuPont analysis
- Important for capital-intensive industries

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 0.5x | Low | Asset-heavy, lower efficiency |
| 0.5-1.0x | Moderate | Average efficiency |
| 1.0-2.0x | Good | Efficient asset use |
| > 2.0x | Excellent | Very efficient, asset-light |

## Real-world example

Walmart has high asset turnover (~2.5x) due to high sales volume relative to assets.

---

This is educational content, not financial advice.

Source: [Definition of Asset Turn](https://signalscreener.fr/definition/asset-turnover/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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