Sales to Assets

Sales to Assets

Sales to Assets  = Sales (Trailing 12 months) / Total Assets

The ratio lets you screen for asset light companies, in other words they do not need a lot of assets to generate sales. Think of an auto manufacturer compared to a software company.

 

How to use the ratio

Available as a screening ratio: No

Available as an output column ratio: Yes (Look under the Quality tab)

 

How to select asset light companies

To find asset light companies sort the column from high to low.

A high Sales to asset ratio means it is an asset light company whereas a low Sales to Assets ratio means the company needs a lot of assets to generate sales.

 

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