Asset turnover ratio:The asset turnover ratio is a financial metric used to gauge a company's efficiency. Net Asset Turnover ratio = Sales/ Net Asset, this ratio indicates the total amount of revenue a company generates for each of the assets it owns. The higher the asset turnover ratio is, the more efficient a company is. Conversely, a low asset turnover ratio indicates that a company is failing to efficiently employ its assets to generate sales. Asset turnover highlights the number of assets that the firm used to produce its total sales. Therefore a low asset turnover would indicate that the firm has idle or improperly use assets.