StockOpine's avatar
$44.3m follower assets
Asset turnover ratio
  • The asset turnover ratio is calculated by dividing sales over average total assets and measures the efficiency with which a company uses its assets to generate revenue. No single ratio should be used in isolation when evaluating a business.

Example: $AMZN

  • Since FY17 $AMZN turnover ratio declined, though it is more appropriate to look at the trend from FY20 onwards, given the changes in accounting standards (lease capitalization). In general, we observe a decline across the board, except AWS which is relatively constant.

Image upload
  • One of the flows of the asset turnover ratio is a deflated ratio in a given year when a company invests significantly in anticipation of high growth phase & vice versa. AWS ratio is an exception as efficiency is maintained over the years despite being a high growth segment.

  • Next week we will release our $AMZN in-depth analysis. Subscribe to receive it in your inbox. 👇
Joey Hirendernath's avatar
Looking forward to next week's release on $AMZN!
StockOpine's avatar
@joeyhirendernath hope you will enjoy it 💪🏻
Dave Ahern's avatar
Cool breakdown and can’t wait to read your thoughts on $AMZN
StockOpine's avatar
@ifb_podcast thank you Dave. To be honest, we can’t wait to compile our thoughts us well. AMZN is huge so we need to hit the key points!
Dave Ahern's avatar
@stockopine I have complete faith you will knock it out of the park!
StockOpine's avatar
@ifb_podcast thank you 🙌🏻
Nathan Worden's avatar
So impressive that AWS can maintain efficiency over years despite its high growth!
StockOpine's avatar
@nathanworden indeed. Stood out to us as well.



Already have an account?