Hash chain: Difference between revisions
Jump to navigation
Jump to search
See also: Key stretching |
en>Knightly-pen Made introduced maths explicit. |
||
| Line 1: | Line 1: | ||
'''Asset turnover''' is a [[financial ratio]] that measures the efficiency of a company's use of its [[asset]]s in generating sales revenue or sales income to the company.<ref>{{cite book |last = Bodie |first = Zane |coauthors = Alex Kane and Alan J. Marcus |title = Essentials of Investments, 5th ed |publisher = McGraw-Hill Irwin |date = 2004 |isbn = 0-07-251077-3 |page =459 }}</ref> | |||
Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio due mainly to cutthroat and competitive pricing. | |||
<math>\mbox{Asset Turnover} = \frac{\mbox{Net Sales Revenue}}{\mbox{Average Total Assets}}</math> | |||
* "Sales" is the value of "Net Sales" or "Sales" from the company's [[income statement]] | |||
* "Average Total Assets" is the average of the values of "Total assets" from the company's [[balance sheet]] in the beginning and the end of the fiscal period. It is calculated by adding up the assets at the beginning of the period and the assets at the end of the period, then dividing that number by two. | |||
==References== | |||
{{Reflist}} | |||
[[Category:Financial ratios]] | |||
{{econometrics-stub}} | |||
Revision as of 20:40, 25 November 2013
Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.[1]
Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio due mainly to cutthroat and competitive pricing.
- "Sales" is the value of "Net Sales" or "Sales" from the company's income statement
- "Average Total Assets" is the average of the values of "Total assets" from the company's balance sheet in the beginning and the end of the fiscal period. It is calculated by adding up the assets at the beginning of the period and the assets at the end of the period, then dividing that number by two.
References
43 year old Petroleum Engineer Harry from Deep River, usually spends time with hobbies and interests like renting movies, property developers in singapore new condominium and vehicle racing. Constantly enjoys going to destinations like Camino Real de Tierra Adentro.
- ↑ 20 year-old Real Estate Agent Rusty from Saint-Paul, has hobbies and interests which includes monopoly, property developers in singapore and poker. Will soon undertake a contiki trip that may include going to the Lower Valley of the Omo.
My blog: http://www.primaboinca.com/view_profile.php?userid=5889534