Definition

Asset turnover

Revenue generated per dollar of assets — the efficiency lever of the DuPont decomposition. Asset-light models turn assets fast at thin margins; asset-heavy models turn slowly at (usually) wider margins. The product of the two is what matters.

Formula

Asset turnover = Revenue ÷ Average total assets

Drivers — what actually moves it

Utilization: more revenue from the same asset base lifts the ratio.
Asset intensity: the capital the model requires — factories and stores vs code and brands.
Pricing: realized price moves revenue with no change in assets.

Where to find it in the filing

Income statement + balance sheet. 10-K Item 8 — revenue from the income statement; total assets from the balance sheet (average opening and closing).

XBRL concepts Echelon grounds to: Revenues · RevenueFromContractWithCustomerExcludingAssessedTax · Assets

Sector caveats — where this breaks

Not comparable across sectors — a grocer and a software company occupy different structural ranges by design.

Drill it in a live lesson DuPont analysis Return on equity

Drill asset turnover on another filer

Graded exercises that use this metric — each one against a different company's own filed figures.

NVIDIA's DuPont decomposition: the transfer test Apple's DuPont decomposition: three ratios, one return Airbnb's DuPont decomposition: three ratios, one return Abbott's DuPont decomposition: three ratios, one return Adobe's DuPont decomposition: three ratios, one return Analog Devices' DuPont decomposition: three ratios, one return

Educational use only — not investment advice. Figures come from public SEC filings; Echelon teaches you to analyze data, it never recommends buying or selling any security.