Asset
efficiency (ability to generate revenue from assets)
A
company that generates more revenue from
less assets is better than one that requires
huge assets to generate little revenue.
While this concept seems pretty straight
forward, the asset efficiency values change
dramatically depending on the industry.
To
calculate:
N=
per dollar of assets Asset Efficiency
= (Revenues / Total Assets) x N
Example:
If a company generates $1 million in revenue,
using $2 million in assets, the company
would generate $50 revenue for every $100
in assets. (50 = (1 / 2) x 100)
Historical and current end-of-day data provided by Interactive Data Corp. and subject to terms of use. Fundamental data supplier: Mergent
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