Non-current asset turnover

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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