Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
3 Cards in this Set
- Front
- Back
|
Working Capital Turnover |
Sales/Working Capital . Where Working Capital= Current Assets less Current Liabilities . The more the ratio the better.
|
|
|
Fixed Assets Turnover Ratio |
. Measures how efficiently the company is deploying its investment in net property, plant and equipment to generate revenues. . Net Sales/ Average Property, Plant and Equipment . A higher the better . Affected by the depreciation method used. |
|
|
Total Assets Turnover Ratio |
. How efficiently the company is deploying the totally of its resources to generate revenues. . A higher turnover implies effective use of net assets to generate sales. . Certain assets, for example , investments, do not relate to net sales. Their inclusion decreases the ratio. . Net Sales/ Average Total Assets |
