shareholder equity / total assets
A debit will decrease turnover, liabilities, and equity.
Here is a link to Annual Employee Turnover Calculator http://www.assessmentcompany.com/resources/costperhire.html
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
Total asset turnover ratio = total sales / total assets
Net Sales / Average Accounts Receivable = Account Receivable Turnover
A debit will decrease turnover, liabilities, and equity.
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
Equity Multiplier ROA*Equity Multiplier=ROE so, (10%)*(x)=(15%), therefore, Equity Multiplier=15%/10%= 1.5 times Total Asset Turnover Profit Margin*Total Asset Turnover = ROA, so (2%)*(x)=10%, therefore Total Asset Turnover=10%/2%= 5 times
To calculate the average shareholders' equity, add the beginning shareholders' equity to the ending shareholders' equity and divide by 2. This gives you the average shareholders' equity for the period.
Here is a link to Annual Employee Turnover Calculator http://www.assessmentcompany.com/resources/costperhire.html
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
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.
There are two ways to calculate Creditors Turnover. First is using the COGS (Cost of Goods Sold) as the basis. Creditors Turnover = COGS / Creditors (A/c Payables) . Second is the more common method which uses Sales as the basis. Creditors Turnover = Net Sales / Creditors (A/c Payables).
Total asset turnover ratio = total sales / total assets
To calculate the equity in your home, subtract the amount you owe on your mortgage from the current market value of your home. This will give you the amount of equity you have in your home.
Stock turnover period = Closing stock x 365 / cost of sales