profitability analysis
profitability analysis
Total assets less net fixed assets equals
Total assets less net fixed assets equals
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.
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.
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.
Each item/total assets=%
Net income = total assets * return on total assets. net income = 1275 * 0.12 = 153
Current assets are those assets which is usable in current fiscal year while total assets includes assets other then current assets like long term assets as formula showTotal assets = current assets + fixed assets
Proceeds from disposal of assets is equal to = Total cost of disposed assets- Accumulated depreciation related to assets disposed+ Profit on sale of fixed assets
The format of the Balance Sheet is Assets = Liabilities + Equity * Current Assets * Fixed Assets * -------------------- * Total Assets * Current Liabilities * Long Term Liabilities * -------------------------- * Total Liabilities * Equity * Net Income * ---------------------------- * Total Equity * -------------------------- * Total Liabilities and Equity
To perform vertical analysis on a balance sheet, you need to express each line item as a percentage of the total assets. This helps in understanding the proportion of each asset or liability in relation to the total assets, allowing for better comparison and analysis.