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

How capital budgeting decisions affect a company’s value, Give an example o...

Give an example of how capital budgeting decisions affect a company's value, strategy or operations. Companies always tend to look for capex projects which will add value to

Business activity cycle, Business Activity Cycle The interest rates al...

Business Activity Cycle The interest rates also depend on business cycles as above. Because the economy moves in the four (4) business cycles, such interest rates will shift l

#title. EM13545112., Define benefit plan for the employee participants

Define benefit plan for the employee participants

Determine the utility of the entrepreneur, Suppose an entrepreneur owns a f...

Suppose an entrepreneur owns a firm which has two production opportunities. Technology A generates an output (net profit) of 10 in state 1, an output of 20 in state 2, and an outpu

Determine market price of a share, What is the market price of a share of s...

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4?  market price of a share

Define the term public issues - floating new issues, Define the term Public...

Define the term Public Issues - Floating New Issues Under this method, issuing company directly offers to general public/institutions a fixed number of shares

Cash flow analysis problem, Problem: Cash Flow Analysis For the attache...

Problem: Cash Flow Analysis For the attached Gantt chart, the following information is available: Invoices are sent at the end of each month. Mark up is 20% on each invoi

Earning method - bases of valuation, Earning method - Bases of Valuatio...

Earning method - Bases of Valuation The business is valued according to the net stream of income it is expected to create over its lifetime. Determination of maintaina

Calculate future value, Your grandparents put $1,000 into a saving account ...

Your grandparents put $1,000 into a saving account for you when you were born 30 years ago. This account has been earning interest at a compound rate of 7%. What is its value today

Types of jobbers in stock market, Types of jobbers in Stock Market The...

Types of jobbers in Stock Market There are three kinds of jobbers as: a) Bulls A jobber buys shares while prices are down and hold them in anticipation such t

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