contestada

Your company has net sales revenue of $49 million during the year. At the beginning of the year, fixed assets are $21 million. At the end of the year, fixed assets are $23 million. What is the fixed asset turnover ratio

Respuesta :

Zviko

Answer:

The fixed asset turnover ratio is 2.13 times.

Explanation:

Fixed Assets Turnover Ratio = Sales / Total Fixed Assets

                                               = $49 million / $23 million

                                               = 2.13 times

Note that we use the end of year balances for fixed assets in the calculation of  fixed asset turnover ratio.

Conclusion :

The fixed asset turnover ratio is 2.13 times.

Otras preguntas