The assets turnover ratio is a crucial metric for businesses as it measures how efficiently they utilize their assets to generate sales. A high assets turnover ratio indicates good inventory management, effective control practices, and efficient use of assets, which can lead to better financial performance. On the other hand, a low ratio may indicate poor inventory management, ineffective control practices, or inefficient use of assets. Improving the assets turnover ratio is essential for businesses as it can help maintain their competitive position in the market. There are several ways to improve this ratio, including increasing revenue, liquidating unused and obsolete assets, leasing instead of buying, improving efficiency, better inventory management, and accelerating account receivables.