Fixed asset and total asset turnover ratio, Finance Basics

Assignment Help:

Fixed Asset and Total Asset Turnover Ratio

Fixed asset turnover = Annual Sales / Fixed Assets

  • This ratio indicate the efficiency along with which, the fixed assets were employed to generate sales revenue like a ratio of 1.4 means one shilling of fixed assets was employed to generate Sh.1.4 of sales.

 

Total asset turnover = Annual sales /Total assets

  • The ratio signify amount of sales revenue generated from employment of one shilling of total asset.

 


Related Discussions:- Fixed asset and total asset turnover ratio

What is holding period return, What is Holding Period Return/Return ...

What is Holding Period Return/Return Holding period yield (HPY) measures the total return from an investment during a given time period in which asset is held by the investo

Interest rates, why borrow from a country with a high interest rate instead...

why borrow from a country with a high interest rate instead of a country with a low interest rate

What is a treasury bill, What is a Treasury bill? How risky is it? Trea...

What is a Treasury bill? How risky is it? Treasury bills are short-term debt instruments granted by the U.S. Treasury which are sold at a discount and pay face value at maturit

Finance.., the nominal fee interest rate in your account is 7% your semi-an...

the nominal fee interest rate in your account is 7% your semi-annually rate of interest APY will be?

Example of debt finance, Example of Debt Finance An example: Intere...

Example of Debt Finance An example: Interest = 10% tax rate = 30% The effective cost of debt (interest) = Interest rate (1 - T) = 10%(1-0.30) = 7% Consider comp

FIR 3410, Your client, a man, is currently 35 years old and he wants to re...

Your client, a man, is currently 35 years old and he wants to retire when he is 65 years old (exactly 30 years from now). He would like his retirement income to be equivalent to

Advantages of development financial institutions, Advantages of Development...

Advantages of Development Financial Institutions Advantages or Functions or can say Case for Development Financial Institutions 1. They grant venture capital 2. They gra

Retirement, Ask quQUESTION 1 1. In the ratio test used to determine whether...

Ask quQUESTION 1 1. In the ratio test used to determine whether a qualified plan is nondiscriminatory, what is the minimum percentage of nonhighly compensated employees who must be

Sole proprietorship, Sole Proprietorship Definition - A sole proprietor...

Sole Proprietorship Definition - A sole proprietorship or sole tradership is the oldest and simplest form of business. It is that type of business organization where one person

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd