The Industry Turnover Ratio (also known as the Assets Turnover Ratio) is a financial ratio that measures the efficiency of a company’s ability to use its assets in generating revenue. It compares the company’s total sales with the value of its assets, and can be used as an indicator of how successful the company is at converting its resources into profits. For instance, if a company has an Industry Turnover Ratio of 3:1 it means that for every dollar invested, three dollars worth of sales are generated. This ratio can tell us lots about the risk and potential of an industry, helping us decide whether or not to invest.