The lower the turnover rate of total assets, the higher the turnover days, indicating that the efficiency of the company's operation with its assets is worse, which will not only affect the profitability of the company, but also directly affect the dividend distribution of listed companies. Both the turnover rate of total assets and the turnover rate of current assets are indicators to measure the operating efficiency of a company's assets.

Generally speaking, the higher the turnover rate of current assets, the higher the turnover rate of total assets. These two indicators evaluate the operation of company assets from different angles.

Total assets turnover rate (times) = sales revenue/average total assets.

In the above formula, sales revenue refers to the total sales revenue minus sales returns, discounts and deductions, and the average total assets can be the average at the beginning and end of the year.

The turnover rate of total assets can also be expressed by turnover days, and its calculation formula is:

Total assets turnover days = average total assets X360/ sales revenue.

Extended data

Problems needing attention in the turnover rate of fixed assets

1, the denominator of this indicator is the average net value of fixed assets, so the comparison of indicators will be affected by depreciation method and depreciation period, so we should pay attention to its comparability.

2. When an enterprise's net fixed assets ratio is too low (for example, due to outdated assets or high depreciation), or when the enterprise is labor-intensive, this ratio may not make much sense.

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