Fixed assets or sales ratio, Finance Basics

Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%.  However, its fixed assets were used at only 75% of capacity.  While forecasting the results for the next year, the company wants to set its target Fixed Assets/Sales ratio at the level it would have realized had it been operating at full capacity.  What target FA/Sales ratio should the company set?

Posted Date: 2/25/2013 2:35:07 AM | Location : United States

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