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

Characteristics of an efficient tax system, Question 1 a) What are the...

Question 1 a) What are the main characteristics of an Efficient Tax system? b) What are the instruments of Public Finance and explain their efficiency. c) Explain what

What is the impact of c on interest rates, Comments : The approved budget f...

Comments : The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, ho

Effective reach and effective frequency-insurance , Before purchasing insur...

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance

Shareholders'' wealth maximization, Shareholders' wealth maximization - Obj...

Shareholders' wealth maximization - Objectives of Business Entity Shareholders' wealth maximization refers to maximization of the total present value of each decision made in

Dividend payout ratio, Dividend Payout Ratio Dividend payout ratio = (...

Dividend Payout Ratio Dividend payout ratio = (DPS/EPS) x 100                                     = Dividend paid/ Earning to ordinary shareholder This is the reci

Factors to increasing the profitability of a business, Factors contribute t...

Factors contribute to increasing the profitability of a business Several other factors contribute to increasing the profitability of a business. For companies that are highly d

What are the factors influencing selection of investment, Investment  Attri...

Investment  Attributes/  Factors  Influencing  Selection  of  Investment In  choosing specific  investments,  investors  would require definite  ideas  regarding  features

policies decided by the proprietor, Some of the policies decided by the pr...

Some of the policies decided by the proprietor are: 1) Time of operating the business 2) Promotion through advertising or special offers 3) Dealing with suppliers and cus

Operations Management, You need cash and FAST! You jump out of your car at...

You need cash and FAST! You jump out of your car at a location known to have one ATM, but a history of a line. Usually you can expect to wait 200 seconds from the time you arrive

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