8/27/2023 0 Comments Calculate total asset turnover![]() ![]() The net asset turnover or NAT is similar to the fixed asset turnover, but it expands its reach. These intangible assets can be significant sources of revenue for some companies. The FAT ratio does not consider intangibles such as patents or goodwill.Still, if the assets are not generating enough revenue, the company is not performing well. A company could have a high FAT ratio because it sells its assets quickly. ![]() The FAT ratio does not consider the quality of the assets. ![]() A company’s ability to generate profit from its assets depends on its ability to pay its liabilities.
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