|SALES TO TOTAL ASSETS|
Net sales / Average total assets (in %)
Also known as Asset Turnover, this ratio measures how efficiently assets are used to make sales. This ratio is also related to pricing strategy, being more useful for fast-growing companies to check if they are actually increasing revenue in proportion to sales.
Businesses such as software can generate tremendous sales per currency unit of assets whereas electric utilities or cable TV firms require a huge asset base to generate sales.
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