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Smart Money

Glossary

What is Asset turnover?

Asset turnover is revenue divided by total assets: how many rupees of sales each rupee of assets generates.

Retailers and distributors turn their assets over quickly; power producers and cement plants slowly. Multiplied by net margin it gives return on assets.

Formula

Asset turnover = revenue ÷ average total assets

Asset turnover on the Pakistan Stock Exchange

Across 472 listed companies with the figure, the median is 0.58×.

Asset turnover of the largest PSX companies
Largest companiesAsset turnover
PIAHCLB PIA Holding Company LimitedB 0.06×
OGDC Oil & Gas Development Company Limited 0.26×
UBL United Bank Limited 0.04×
MEBL Meezan Bank Limited 0.07×
FFC Fauji Fertilizer Company Limited 0.82×