Fixed asset and total asset turnover ratio, Finance Basics

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.

 

Posted Date: 1/30/2013 1:51:43 AM | Location : United States







Related Discussions:- Fixed asset and total asset turnover ratio, Assignment Help, Ask Question on Fixed asset and total asset turnover ratio, Get Answer, Expert's Help, Fixed asset and total asset turnover ratio Discussions

Write discussion on Fixed asset and total asset turnover ratio
Your posts are moderated
Related Questions
Similarities between Preference Share Capital and Debt Similarities between Preference Share Capital and Debt are as follows: a) Both have fixed returns. b) Both do not


Ask question #Minimu• 1.What is an Auction? E Bay is a market leader in online auction sites. Discuss SWOT for E bay using your web sources?. 2.Why so many entrepreneurs drawn to

monthly income $7,000 Monthly repay $911 what is the maximum I qualify for

Capital Asset Pricing Model (CAPM) CAPM is a methods that is used to establish the required rate of return of an investment provided a particular level of risk.  According to

Restrictive Bond or Debt Covenant In this case the debenture holders will impose strict conditions and terms on the borrower. These restrictions may comprise: a) No disposal

If banks expect an unusually large increase in withdraws from checking deposit accounts in the near future, what would happen to the federal funds rate, borrowed reserves and nonbo

Money or Discount Markets - Financial Markets 1. Are discount and acceptance financial institutions 2. This is a market for S.T funds growing up in one year. Money market w

Solutions - Shareholders and Management Conflict Conflicts between management and shareholders may be resolved as follows like: 1. Pegging or attaching managerial compens

Debt Finance in US of Small Companies Why It CAN Be Difficult For Small Companies to Raise Debt Finance in US Lack of safety avoidances of finances available