Asset Turnover Ratio

  

How often a person switches sides when lying in a tanning bed. Also, a way to measure how well a company is utilizing its resources.
This statistic compares a company's sales to the value of the assets it owns. The goal is to measure how efficiently the company is using its resources to create sales. The higher the number, the better the company has done leveraging its assets into sales.

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finance a la shmoop. what does per-capita mean? well there's poor capita yeah this

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guy, how would you like to be named capita and then there's per capita which [man sits under a tree]

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just means well technically per head. yep comes from Latin like oh so many

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things salsa dressing and dancing among others, the word decapitation comes to [dancing feet]

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mind. like what happens when those flying human taxi drones get too far to the

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left or when King Henry got tired of a wife. so if that happened often it had [helicopter prop]

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throw off the per capita calculations. and same deal if we suddenly had a lot

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of two-headed people being born like the aliens in men in black and whole bunch

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other Hollywood movies. per capita is a useful metric in a bunch of financial

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calculations. a common set is GDP or gross domestic product per capita .like

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if you have a ton of GDP say ten trillion dollars from your country [100 dollar bill]

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whateverstan, if you only have a million people that's a ton of production

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productivity. but if you're say China with well over a billion people well

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then it's a much lower GDP per capita. the calculations get quoted when talking

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about things like cell phone monthly subscriptions, computer ownership or [people crowd around a cell phone]

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particularly rollicking house parties. so yeah the notion of per capita is pretty

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important but don't stress if you're not an expert yet. it's a nothing to lose

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your head over. [man carries head]

Up Next

Finance: What is Inventory Turnover?
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Inventory turnover...way less delicious than an apple turnover. So...what is it?

Find other enlightening terms in Shmoop Finance Genius Bar(f)