See how many sales dollars a generic company squeezes out of each dollar of assets.
$800,000
$400,000
2.0 times
divides net sales by average total assets: how many sales dollars each dollar tied up in assets produced during the period.
A capital-heavy business — a lot of plant assets relative to sales — naturally turns over more slowly than one that owns little and rents or outsources the rest. Comparisons matter most within the same industry.