How do you calculate the asset turnover ratio and what does this ratio measure?

Question:

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting: A Business Process Approach

ISBN: 978-0136115274

3rd edition

Authors: Jane L. Reimers

See More Books

Question Posted: Sep 01, 2014 12:39 PM

See More Questions

How do you calculate the net present value of a cash flow stream?
How do you calculate forward risk-free interest rate?
How do you calculate % of sales in elasticity? Elasticity of demand = .4512 housing income 75000 expected to fall 2.5% sales will fall by _____?
Using Dirac delta functions in the appropriate coordinates, express the following charge distributions as three-dimensional charge densities p(x). (a) In spherical coordinates, a charge Q uniformly...
What is nonstandard work? Are women more or less likely than men to hold this type of employment? Is nonstandard work positively or negatively associated with workers' wages?
For the DOS data set, fit a cumulative logit model with the three-level depression diagnosis as the ordinal response and Age, Gender, CIRS, and MS as covariates. (a) Repeat the analyses (a), (b), and...
Imagine you are working for a company that sells teleconferencing equipment. Draft a value proposition for selling your equipment to a sales manager who has ten salespeople traveling two weeks a...
Q1. The following transactions occurred during Year 1, the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits....
Brian O'Neil intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $400 each. The airline intends to reimburse...
A sweatshirt supplier is trying to decide how many sweatshirts to print for the upcoming NCAA basketball championships. The final four teams have emerged from the quarterfinal round, and there is now...
What types of costs related to long-term operational assets are capitalized and what types are expensed?
Multiple Choice Questions 1. Which of the following is an intangible asset? a. Franchise b. Oil reserves c. Land d. Repairs 2. Depreciation is the systematic allocation of the cost of an asset a....
Regional Hospital is a 500-bed hospital and several associated clinics in a major East Coast metropolitan area. It has been an aggressive adopter of computing technologies in efforts to decrease...
Are only unconditional promises or orders negotiable? If yes, why? If no, why not?
Rich Foods Company advertises that its cereal, Fiber Rich, reduces cholesterol. After an investigation and a hearing, the FTC finds no evidence to support the claim. To correct the publics impression...
How can global open innovation help companies be cost efficient whilst remaining innovative?
What is the key to liability on a negotiable instrument?
What is the effect of a blank indorsement?
A solution contains 50.0 g of heptane (C 7 H 16 ) and 50.0 g of octane (C 8 H 18 ) at 25 C. The vapor pressures of pure heptane and pure octane at 25 C are 45.8 torr and 10.9 torr, respectively....
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
Suppose you have a random variable $Z$ that follows a standard normal distribution, find the following probabilities that correspond to the area under the standard normal curve: a. $P(Z <1.25)$...
Refer to the information provided in P2-4. Required Identify each transaction in P2-4 as financing, investing, or operating.
Jill Jones has just established a security alarm maintenance service. She charges $20 per hour per person and is paid by check upon completion of the job. Her expenses are rather lowusually only...
Jacqueline owns and operates a specialty cosmetics manufacturing firm. Distribution is primarily through boutique shops in regional shopping centers, although some items are sold directly through a...
Rewrite the following C++ program by converting its if..else.. statements into switch... case.... The logic and outputs of the rewritten program must remain unchanged. #include using namespace std;...
4) A B 3) Determine if the following 2 circuits are equivalent using Boolean Algebra rules and laws A B Using K. maps reduction rules, simplify the expressions and draw the new simplified circuits Z...
1. Does this parity generator provide an even or an odd parity? show how you reached your answer. 22 2 Parity bit 3 2 2

How do you calculate the asset turnover ratio and what does this ratio measure?

Question:

Step by Step Answer:

The asset turnover ratio is calculated by divid...View the full answer

Financial Accounting: A Business Process Approach

Students also viewed these Accounting questions