 To explain the concept of asset turnover ratio to a greater extent, I am going to use the data, some numerical example to explain how the asset turnover ratios can be calculated and how they can be compared and when you calculate the value of asset turnover ratio for several businesses or several firms, what do they tell us about those firms? So we already know that asset turnover ratio is an indicator of how efficient a firm or a business is operating. So for the sake of example, I am going to take into account the data from four companies. The first one is Walmart Incorporation and the data for this particular company has been taken from NYSE's website. Then there is this another company whose name is Target Corporation and the data is taken from NYSE and the short symbols that have been used in on these websites of New York Stock Exchange for Walmart and Target Corporation are WMT and TGT respectively. Similarly, we have taken the data, the real life data of AT&T Incorporation from the same source NYSE and this particular thing is abbreviated on NYSE as capital T and the fourth company which has been taken in this example whose values have been taken into account in order to calculate the values for asset turnover ratio is the Verizon Communication Incorporation and again the data is taken up from NYSE website and this particular company is abbreviated as WZ. So in this example, you can see that there is this data for all each of the four companies and we have seen that there are millions of values written and first of all we will take the beginning assets. As I told you earlier, we have taken the average total assets in the denominator and how to calculate the average, you are taking the time period analysis purpose for the year and what will be the value of the asset in the beginning of the year and what will be the value of the assets at the end of the year to calculate the average. So beginning assets for Walmart, Target, AT&T and Verizon have been enlisted here and ending assets have also been mentioned. In both the values for each of the four companies, the average we calculated was $199,203, etc. and then we considered the revenues of the four companies that has been accounted for. Now you have to divide the revenue from the revenue with the total assets. So for Walmart, the value of the asset turnover ratio is like this, that turns out to be 2.30, Target's value is 1.79, AT&T's value is 0.41 and Verizon's value is 0.52. Now you can see that the value of AT&T and Verizon's asset turnover ratio is smaller than 1. What does this mean? As I told you, when we talk about any software companies or cellular companies, the total assets there have to be a very expensive high-tech expensive machinery because of which the total assets' value is very high. So now you will see the total assets' value of AT&T and Verizon. If we compare this with Target, you can see a lot of difference. So that's the basic reason that the asset turnover ratio for AT&T and Verizon's value is smaller than 1. But on the contrary, we have this grocery store or a store to sell things, Target. For that, you get to see the value of the asset turnover ratio because there are not very expensive total assets there. There are not very big level total assets as compared to this particular mobile company, you can see the comparison of AT&T's total assets. So you get to see the value of the asset turnover ratio from one to the other. So the value of Walmart is 2.30. Now we will try to understand what is meant by this 2.30, 1.79, 0.41 and 0.52. What are the aspects of these different sectors? So when we talk about AT&T and Verizon, as I told you, since this telecommunication and utilities sector represents AT&T and Verizon, their value is smaller than 1, there are a lot of total assets, but if you consider the companies of large asset bases, then you can compare the value ratio of their asset turnover ratio with the companies of large asset bases. If we look at the values for Walmart and Target store, we can see that they are larger than 1 and they show that they seem to be more efficient as compared to the other two which we have for which the asset turnover ratio values are smaller than 1 and the value of the best asset turnover ratio among all 4 companies is 2.30. This means that against the total asset of 1 dollar, Walmart stores have earned 2.3 dollars. So this means how efficiently they have done their business. As compared to Target, they have generated 1.79 dollars revenue. So this is how you can overall, you can compare the companies, specifically when they are operating in the same sector or the same industry on the basis of asset turnover ratio that they are going to tell you how efficiently these companies are being run or they are being operated.