In: Accounting
Using the information shown, what is the asset turnover ratio?
Net Income | $500,500 |
Net Sales | $379,000 |
Current Assets | $750,000 |
Current Libabilities | $212,000 |
Average Assets | $875,000 |
answer 0.43 times
asset turnover ratio is calculated by dividing the net sales by average asset
asset turnover ratio=net sales/average assets
asset turnover ratio=$379000/$875000=0.43 times
note:the figures are rounded upto two decimal points