Asset Turnover

A measure of how effectively the business has used its assets to generate revenue. The business makes $1,558 of sales for every $100 of its asset investment. The higher the number the better the turnover. Ways to improve this metric include increasing sales using the same asset base, using capital more efficiently, and/or improve cash management by reducing inventory and receivables. For this period, the Asset Turnover exceeds the target of 5 times for the child care business.