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.

Learn new Accounting Terms

NET OPERATING INCOME (NOI) is income after deducting for operating expenses but before deducting for income taxes and interest.

AFUDC is Accumulated Funds Used During Construction or Allowance for Funds Used During Construction.

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