Respuesta :
For one of its divisions, Davis Corporation provided the following financial information: average assets of $510,000, sales of $1,050,000, and income of $121,000. 2.059 is the investment turnover.
How many times does an investment turnover?
The percentage of a portfolio that is sold in a given month or year is known as turnover in the investing industry. For deals executed by a broker, a rapid turnover rate results in higher commissions. An organization's total revenues are referred to as its overall turnover.
A business's revenue output is compared to its debt and equity using the investment turnover ratio. With a certain amount of funding, a management team's capacity to generate revenue
How are investment turnover figures determined?
The turnover ratio gauges the annual trading activity of a fund. It is determined by dividing the lesser of the acquisitions or sales by the monthly average of net assets. Securities with a maturity of under a year are not taken into account.
sales = $1,050,000
assets= $510,000
income= $121,000
investment turnover= Net sales / Average investment assets
investment turnover= $1,050,000 / $510,000
investment turnover= 2.059
Learn more about investment turnover: https://brainly.com/question/16905774
#SPJ4
