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What is a firm's total asset turnover

What is a firm's total asset turnover, If its fixed assets are 120,000 current assets are 30,000 current liabilities are 44,000 sales were 200,000 and net income was 75,000.

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Expert Solution

Given information

Fixed assets = 1,20,000

Current assets = 30,000

Current liabilities = 44,000

Sales = 2,00,000

Net income = 75,000

Calculation of Total asset Turnover ratio

Total asset turnover ratio = Sales Revenue / Total Assets

                                         = 2,00,000 / 1,20,000 + 30,000

                                         = 2,00,000 / 1,50,000

                                         = 1.33

Firm's Total Asset Turnover Ratio = 1.33

 

 

 

 

Firm's Total asset Turnover ratio = 1.33

balaji rao answered 2 years ago
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