1.5=1.0 x EM
1.5=1.0EM 1.5/1.0EM
EM=1.5/1.0=1.5
1.5=0.3TAT
ROE=PROFIT MARGIN X TAT X EM
TAT=1.5/0.3=5
Magic
It is the ratio..
Retirement assets may be counted at only 60 percent of current value.
Return on Assets = Profit Margin on Sales x Asset Turnover .1 = Profit Margin on Sales x 3 .033 = Profit Margin on Sales
Banking regulation <APEX :)
Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
Operating asset turnover is the ratio of net sales divided by operating assets.
Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better.
Formula for asset turnover: Asset turnover = net sales / total assets Net sales = 32000 * 3.2 = 102400
The analysis that uses the percent of fixed assets to total assets is called the fixed asset turnover ratio. It helps measure a company's ability to generate revenue from its fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets, while a lower ratio suggests inefficiency in utilizing these assets.
Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal.Formula:Asset Turnover = Sales / Average Total Assets
fixed assets turnover ratio
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
Magic
Total asset turnover ratio = total sales / total assets
The asset turnover ratio is used to calculate how effectively a company is using it's assets to encourage production. If the asset turnover ratio is high, the assets are being used effectively. If the ratio is low, the assets could be used more productively to facilitate production.