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Asset turnover ratio measures how efficiently a company uses its total assets to generate revenue. A higher ratio indicates better asset utilisation. Asset turnover = Revenue / Average total assets.

Trin-for-trin guide

1. 1Get revenue from the income statement
2. 2Calculate average total assets: (start-of-year + end-of-year assets) / 2
3. 3Asset turnover = Revenue / Average total assets

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