Illustrate about asset turnover - performance ratios, Strategic Management

Assignment Help:

Q. Illustrate about Asset turnover - performance ratios?

Asset turnover                                    =    Turnover /    Total assets or Capital employed

This shows how much sales are generated for every £1 of capital employed.  A low asset turnover indicates that the business is not using its assets affectively and should either try to increase its sales or dispose of some of the assets.

A company with old noncurrent assets that are almost completely depreciated will show a high asset turnover, whereas a company with recently acquired noncurrent assets will show a low asset turnover.  Different accounting policies will also give different ratios, for example using the cost model to or re-valuation model.  The age of the non-current assets is important in understanding the ratio. Recently acquired noncurrent assets will not be generating revenues to their full extent.


Related Discussions:- Illustrate about asset turnover - performance ratios

Mensa, I need a five year plan with cost estimates and a time line also net...

I need a five year plan with cost estimates and a time line also net present values at 10% discount rate

Mensa Inc., Describe the situation facing Mensa at time of the case. This ...

Describe the situation facing Mensa at time of the case. This should include major issues facing the company and the decisions that need to be made.

Explain the function of the group, a.     Explain the function of the group...

a.     Explain the function of the group. b.     For each group, describe the following: 1)     How it came into being. 2)     How long it has existed (and is expected to

Case study using blue ocean strategy, Astor Lodge & Suites, Inc. There are ...

Astor Lodge & Suites, Inc. There are two parts: part A: describe the Us hotel industry and competitive positioning and financial performance. Part B: study the Aus hotel industry a

Lukas manufacturing , Lukas Manufacturing is presently producing a tape hol...

Lukas Manufacturing is presently producing a tape holder that has a variable cost of $0.75 per unit and a selling price of $2.00 per unit.  Fixed costs are $20,000 a year.  Present

Market segmentaion, how to write an assignment on market segmentaion

how to write an assignment on market segmentaion

Discuss the organizational structure of a restaurant, Question 1: (i) ...

Question 1: (i) In food production, the success of the operation depends on the Executive Chef and his various heads of sections in the main kitchen. What are these sections

Sanlam, write an essay of approximately 1500 words in which you critically ...

write an essay of approximately 1500 words in which you critically analyse and evaluate the value innovation strategy that sanlam opted for in their 2009 blue star financial advise

Research on a business organization, The title of the research question is:...

The title of the research question is: 1. To investigate and research on a business organization of your interests. 2. To identify the scope of their business strategy, within th

Product innovation rates, Product innovation rates are a: a. A goal-ba...

Product innovation rates are a: a. A goal-based measure. b. A corporate goal. c. A productivity measure. d. An external factor.

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