Calculate the total assets turnover ratio

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Reference no: EM131796040

Choose two latest annual reports of one publicly traded company (a company whose shares are bought and sold on a recognised stock market) in any industry

and:

a) Calculate the total assets turnover ratio and comment on how efficiently the company is utilising its total assets for two consecutive financial years.

b) Calculate the fixed assets turnover ratio (or non-current asset turnover ratio) and comment on the adequacy of the company's investment in fixed assets (non-current assets) in relation to the revenue generated for two consecutive financial years.

c) Calculate the ratio of revenue to working capital and comment on how efficient the company is in turning over or utilising its working capital annually in each of the last two consecutive financial years.

d) Calculate the operating expense ratio for each of the last two consecutive years. How does the cost of operating the business measure up against the revenue generated by the company (and for the industry in which it operates, if data is available) over the two years being considered? (10 marks)

e) Calculate the return on investment at the company and comment on the efficiency with which its net total assets generate net profit in each of the two consecutive years.

Reference no: EM131796040

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