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A good ratio for capital assets typically refers to the capital asset turnover ratio, which measures how efficiently a company uses its capital assets to generate revenue. A ratio greater than 1 indicates that the company is generating more revenue than the value of its capital assets, which is generally viewed positively. However, the ideal ratio can vary by industry; capital-intensive industries may have lower ratios, while service-oriented sectors might aim for higher ones. It's essential to compare the ratio against industry benchmarks for meaningful insights.
What else can I help you with?
What is a asset utilization ratio?
Sales over Operating assets /which are long term +working capital/
Is owner capital an asset?
no owners capital is not an asset its an internal liability for the company
What are Asset Utilization Ratios?
How do I compute Asset Utilization ratio
What's the formula for quick asset ratio?
1. Quick assets ratio formula Quick asset ratio = quick assets / current liabilities
What is current assets to total assets ratio?
Current asset to total asset ratio shows how much is the proportion of current asset with comparison to total assets of business.
What are the most five important ratios for banks?
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
What is a simple definition of capital asset ratio?
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What is the prudential norms of the banks?
Prudential norms relate to income recognition,asset classification,provisioning of NPAs and capital adequacy ratios( capital to risk weighted asset ratio, CRAR)
What is a asset utilization ratio?
Sales over Operating assets /which are long term +working capital/
What is considered a good debt to asset ratio?
A good debt to asset ratio is typically around 0.5 or lower. This means that a company has more assets than debt, which is seen as a positive indicator of financial health.
What is a firm's capital structure?
Capital structure is basically how the firm chooses to finance its asset, or is the composition of its liabilities. A large way of measuring capital structure is a firms debt to equity ratio - the higher this ratio is, the more leveraged (the more indebted) the firm is.
What is a good debt to asset ratio for a family?
A good debt to asset ratio for a family is typically around 0.5 or lower. This means that the family's total debt is no more than half of their total assets. A lower ratio indicates less financial risk and better financial health.
What is a good asset to equity ratio for a company?
A good asset to equity ratio for a company is typically around 2:1. This means that the company has twice as many assets as it does equity, which indicates a healthy balance between debt and ownership in the business.
Classification of Ratio Analysis?
1. Ratios for management a. Operating ratio b. Debtors turnover ration c. Stock turnover ratio d. Solvency ratio e. Return on capital 2. Ratios for creditors a. Current ratio b. Solvency ratio c. Fixed asset ratio d. Creditors turnover ratio 3. Ratios for share holders a. Yield ratio b. Proprietary ratio c. Dividend rate d. Capital gearing e. Return on capital fund.
Is owner's capital asset?
no owners capital is not an asset its an internal liability for the company
Is owner capital an asset?
no owners capital is not an asset its an internal liability for the company
What is considered a good debt to asset ratio for a company?
A good debt to asset ratio for a company is typically around 0.5 to 0.6, meaning that the company has more assets than debt. This ratio shows how much of the company's assets are financed by debt, with lower ratios indicating less financial risk.
