its means company have good financial position and having the goodwill
Asset turnover is the ratio of a company's net sales to their total assets. It can be used to measure how efficiently the company is using its assets to increase sales: a high ratio indicates efficiency, whereas a low ratio indicates inefficiency. It can be calculated by dividing the amount of sales by the company's assets.
Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better.
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.
For every $1 in assets, the firm produced $3.50 in net sales during the period.
Formula for asset turnover: Asset turnover = net sales / total assets Net sales = 32000 * 3.2 = 102400
Sales turnover is purely the revenue from selling a good or service. It excludes things like return on investment, interest earned and asset appreciation which are also included in the annual turnover.
Capital turnover = Sales/ Invested capital
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
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
Recent is an adjective: 'The recent sales have increased our turnover'. Recently is the adverb: 'The sales we held recently have increased our turnover'.
The equation for AR Turnover is: AR Turnover = Net Credit Sales / Average AR (/=divided by) Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
There are no advantages of labour / staff turnover. Staff turnover is the decrease in the amount of employees you have in your business. Presence of staff turnover indicates employees are leaving your business for some reason. There are no advantages of labour / staff turnover.