Current Asset Turnover
factor.formula
Current Asset Turnover Ratio:
Average Current Assets:
in:
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The total operating income of the last 12 months (Trailing Twelve Months Revenue). This data is the total operating income of the past year, which can reflect the company's recent operating conditions more timely.
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Average current assets. Calculated by averaging the current assets at the beginning and end of the period, it more accurately represents the overall size of the company's current assets during the period.
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Total current assets at the beginning of a reporting period. Usually refers to current assets at the beginning of an accounting period (for example, a quarter or a fiscal year).
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Total current assets at the end of a reporting period. Usually refers to current assets at the end of an accounting period (for example, a quarter or a fiscal year).
factor.explanation
The current asset turnover rate reflects the turnover rate and operating efficiency of the company's current assets within a certain period of time. A high current asset turnover rate indicates that the company can use current assets more effectively to generate sales revenue, which means that the company has a strong operating capacity and also reflects the effectiveness of the company's current asset management. However, too high a turnover rate may also mean that the company has maintained too low a level of current assets and may face liquidity risks. Therefore, this indicator needs to be comprehensively analyzed in combination with the industry average and the company's own historical data. This indicator is usually compared with other companies in the industry to evaluate the company's operating efficiency and profitability.