ASSET TURNOVER RATIO Definition

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ASSET TURNOVER RATIO is a general measure of a firms ability to generate sales in relation to total assets. It should be used only to compare firms within specific industry groups and in conjunction with other operating ratios to determine the effective employment of assets. Formula: REVENUE/ASSETS.

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SOUND, when used in a financial context, means financially secure and safe.

CONSUMMATE is to bring to completion or fruition; conclude, e.g., consummate a business transaction.

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