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Fixed assets to total assets ratio describe about the percentage or number of time fixed assets are of total assets. It helps the management to find out that either they are maintaining proper fixed assets and current assets ratio or there may be any changes required in the ratio which is to be maintained because if they maintain high ratio it will affect the depreciation expense and ultimately net income as well.

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What is the Revenue to non current assets ratio?

Revenue/Total PPE


Sam reported total assets of 1903000 and non current assets of 894410 He also reported a current ration of 1.60 What amount of current liabilities did he report?

Current assets = total assets - long term assets Current assets = 1903000 - 894410 Current assets = 1008590 Current ratio = 1.6 Current ratio formula = Current asset / Current liabilities 1.6 = 1008590 / Current liabilities Current liabilities = 1008590 / 1.6 Current liability = 630369


Do you include deferred taxes in current assets when calulating current ratio ratio?

No, deferred taxes are not included in current assets when calculating the current ratio. The current ratio is defined as current assets divided by current liabilities, and it typically includes cash, accounts receivable, and inventory, among others. Deferred tax assets are generally classified as non-current assets, as they represent taxes that can be recovered in future periods.


Is assets directly associated with non-current assets classified as held for sale is used to calculate the acid-test ratio?

No, assets classified as held for sale are not included in the calculation of the acid-test ratio. The acid-test ratio focuses on a company's most liquid assets, specifically cash, cash equivalents, and receivables, excluding inventory and non-current assets. Since non-current assets held for sale do not represent liquid assets that can be quickly converted into cash, they are not part of this ratio.


Define non performing assets coverage ratio?

The ratio of provision against total NPA

Related Questions

What is the Revenue to non current assets ratio?

Revenue/Total PPE


What is Non Current Assets to Total Assets?

Fixed assets to total assets ratio describe about the percentage or number of time fixed assets are of total assets. It helps the management to find out that either they are maintaining proper fixed assets and current assets ratio or there may be any changes required in the ratio which is to be maintained because if they maintain high ratio it will affect the depreciation expense and ultimately net income as well.


Sam reported total assets of 1903000 and non current assets of 894410 He also reported a current ration of 1.60 What amount of current liabilities did he report?

Current assets = total assets - long term assets Current assets = 1903000 - 894410 Current assets = 1008590 Current ratio = 1.6 Current ratio formula = Current asset / Current liabilities 1.6 = 1008590 / Current liabilities Current liabilities = 1008590 / 1.6 Current liability = 630369


Do you include deferred taxes in current assets when calulating current ratio ratio?

No, deferred taxes are not included in current assets when calculating the current ratio. The current ratio is defined as current assets divided by current liabilities, and it typically includes cash, accounts receivable, and inventory, among others. Deferred tax assets are generally classified as non-current assets, as they represent taxes that can be recovered in future periods.


Is assets directly associated with non-current assets classified as held for sale is used to calculate the acid-test ratio?

No, assets classified as held for sale are not included in the calculation of the acid-test ratio. The acid-test ratio focuses on a company's most liquid assets, specifically cash, cash equivalents, and receivables, excluding inventory and non-current assets. Since non-current assets held for sale do not represent liquid assets that can be quickly converted into cash, they are not part of this ratio.


What is the difference between total assets and current assets in a company's financial statements?

Total assets include all of a company's assets, both current and non-current, while current assets are a subset of total assets that can be easily converted into cash within a year.


Define non performing assets coverage ratio?

The ratio of provision against total NPA


Is inventories included in total assets?

Yes, inventories are included in total assets. Total assets refer to the sum of all current and non-current assets owned by a business or individual. Inventories, which consist of goods held by a company for sale in the ordinary course of business, are considered current assets and are therefore included in the calculation of total assets.


How do you measure the NPA?

You can measure NPA (Non-Performing Assets) by calculating the ratio of NPA to total assets or total loans. NPA is typically expressed as a percentage of the total loan portfolio or total assets of a bank or financial institution. A higher NPA ratio indicates a higher level of non-performing assets relative to the total portfolio.


Is accounts receivable a current or non current assets?

Current assets


How do you measure NPA?

Non-performing assets (NPAs) are typically measured as a percentage of the total assets held by a financial institution. This ratio is calculated by dividing the total value of NPAs by the total value of assets. The higher the NPA ratio, the greater the risk exposure for the institution.


Are investments current assets or other assets?

If investments are for short term then these are current assets but if these are for long term then non-current assets.