Let us understand this ratio a little better as it is different from the current ratio. The current ratio just looks at the current assets and the current liabilities. The Current Assets Turnover Ratio tells you how quickly the company is collecting on receivables. It's also industry specific, but it should be as low as possible. If it jumps up, you could have a serious liquidity issue. Normally, this ratio is seen as a percentage of sales and the lower it is the better for the health of the company.

One can also extent the above argument of receivables to inventories too and focus on how quickly the inventory is turned around. Here also the ratio is compared with annual sales to get a relative picture. Think of inventory as frozen cash, so you would like to churn it as many times as possible. The ideal rate varies by industry, but you must look at the trend and also benchmark with the industry.