average total assets is computed by dividing the total assets at beginning and ending of a year
Return on total asset = Net Income / Total Assets return on total assets = 26000 / 500000 * 100 Return on total assets = 5.2%
(total assets current year + total assets prior year)/2 total assets current year plus total assets prior year then divide that total by two to find the average. Dont over-think this.
Net Income divided by Average Total Assets
Return on total assets = net income / total assets *100 Return on total assets = 30000 / 500000 * 100 = 6%
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average total assets
Return on assets is Net income/ total assets. Hence to arrive at net income we should ascertain total assets first, as the return on assets is provided at 8.7%. Total assets is sum of Equity plus Debt plus Other liabilities. We have total equity at USD 520000. Hence debt can be ascertained from the Debt Equity ratio at 1.40. But what about other liabilities? As it is not provided we will not be able to compute total assets and hence net income from the given particulars.
A cost or expense ratio is not that hard to calculate. Basically its the operating expenses divided by the average value of assets under management. Many sites have calculators that make this easy.
If A Company Has Average Total Assets Of $8,500,000 Average Total Common Stock Of $1,000,000, Average Total Stockholders' Equity Of $4,400,000 Sales $10,500,000 And Net Income Of $860,000. What Is Its Return On Equity Ratio?
total asset turnover shows how much revenue is contributed by assets of a company. a higher ratio implies higher revenue earned. it is calculated as follows:Total asset turnover = Revenue / Average total assetsAverage total assets = (Opening total assets + Closing total assets) / 2
Asset Turnover = Net Sales/Average Total Assets Asset Turnover = 51195/134128 Asset Turnover = 0.38169 It depends on the industry, but generally a number this low indicates that the company has too much money tied up in assets that are not contributing to sales. It's a ratio of sales/total assets (or total average assents). Profit margins are an important consideration when analysing this number.
1) The total distance travelled.2) The total time taken.Speed = Distance/Time