Ratios that measure how efficiently a firm manages its assets and operations to generate net income are referred to as asset turnover and control ratios. To provide my answer with proof I share a simple definition of asset turnover ratio with you: - Asset Turnover = Sales or Revenues / Total Assets. A simple formula which coincides with description mentioned above. It poses as an indicator of efficiency being theratio of the value of a company’s sales or maybe revenues generated relative to the value of its assets.
I do hope you will find this information helpful.
Regards.