Non-current asset turnover

Financial ratio analysis.

Non-current asset turnover is a management efficiency ratio.

It measures the annual revenue generated per unit of non-current assets.

Non-current asset turnover is calculated as:

Revenue ÷ non-current assets

Non-current asset turnover example

Revenue for the period is £40 billion and non-current assets are £20 billion.

Non-current asset turnover = £40 bn / £20 bn

= 2

The greater the non-current asset turnover, the greater the efficiency with which non-current assets are being used in the business.

See also

• Management efficiency ratio
• Non-current assets
• Revenue