Asset turnover

What it measures¶

Asset turnover divides a year's revenue by the average total assets — the mean of what the company owned at the start and the end of the year. It answers: how many units of sales did each unit of assets bring in? A turnover of 2 means the assets "turned over" twice in sales during the year.

Why it is on the page¶

It is the efficiency factor of the DuPont decomposition: a company can earn a good return on its assets with thin margins if it turns them over fast, as retailers and contract manufacturers do. Its change from year to year is the condition summary's Efficiency improving check.

Thresholds, their source and the population they were fitted on¶

The page draws no zones: turnover is low by nature for power companies and railways and high for retailers, so no line applies across industries.

• Fitted on: no population — a descriptive ratio.
• Evidence grade: not graded.

A worked example¶

Celestica, as the Fundamentals page showed it on 9 August 2026 (fiscal year 2025): asset turnover 1.88 — together with leverage, the main source of its 40% return on equity, since its margin was only 8%.

What “No verdict” means here¶

The row carries no verdict of its own. It reads insufficient data — requires the prior period for the oldest stored year, which has no opening assets to average.

What the verdict is and is not¶

The figure describes how much revenue the assets produced in one year. It is not a forecast and not an instruction to trade the shares.