use the following formula: Asset turnover ratio = net sales divided by average total assets. An asset turnover ratio could be high or low. Depending on the industry, a high or low ratio may mean ...

The formula for the fixed asset turnover ratio is: FAT=Net SalesAverage Fixed Assetswhere:Net Sales=Gross sales−Returns and ...

Financial ratios are useful tools for investors to better ... Solvent companies are those that own more in assets than they owe in debt, which means they have a greater capacity to meet long ...

Efficiency ratios determine how productively a company manages its assets and liabilities ... Using the formula above, we get an average turnover rate of under five days, which means it took ...

Were the company to liquidate its assets, it could pay off all of its short-term liabilities and still have $500,000 remaining to invest in its operations. A working capital turnover ratio is a ...