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Sales to total assets

Sales to total assets ratio

Description

Sales to total assets (S/TA) ratio shows how much sales are generated per one dollar of assets, or in other words, how effectively the company uses its’ assets. Data to calculate this ratio is collected from the income statement and the balance sheet.

Norms and limitations

There are no general norms for this ratio.

The higher value of the ratio, the better it is for the company. It is recommended to compare this ratio to those of the companies, working within the same industry.

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