The Asset Efficiency Ratio (AER) is a measure of an organization’s financial performance. It is calculated by dividing the total assets employed by the firm’s profit before tax. This ratio provides insight into how efficiently a business is utilizing its available resources in order to generate income. A high AER indicates that a company is able to generate a higher level of income by utilizing fewer total assets. On the other hand, a low AER suggests that the company is not utilizing its assets efficiently and may need to take corrective action. By tracking the AER over time, businesses can assess their ongoing financial health and make adjustments accordingly.