It is calculated by dividing sales in dollars by assets in dollars. Formula: Asset Turnover = Revenue / Assets 2007: Revenue = $1‚886‚081‚000 Assets = $2‚900‚462‚000 Asset Turnover = $1‚886‚081‚000 / $2‚900‚462‚000 = 0.650269 2008: Revenue = $2‚380‚327‚000 Assets = $3‚629‚001‚000 Asset Turnover = $2‚380‚327‚000 / $3‚629‚001‚000 = 0.655918 k) Return on Assets
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Inferring an organization’s performance from financial statements only; becomes difficult. Hence‚ financial ratios are used to evaluate profitability‚ liquidity‚ solvency and capital market strength. Here‚ the group has done a financial analysis of Britannia Industries Limited‚ 2011-12. PROFITABILITY RATIOS: Profitability ratios measure the degree of operating success of a company. The only reason why investors are interested in a company is that
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Inventory turnover is an important and often overlooked ratio that indicates inventory levels. A low turnover is usually a bad sign because products tend to deteriorate as they sit in a warehouse. There is also weaknesses associated with inventory turnover such as‚ companies selling perishable items have very high turnover.3 Another ratio is the receivables turnover which shows how frequently a company converts receivables into cash. An investor typically is in favor of a high receivable turnover
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Company presents the following data for 2011. Receivables‚ less allowance for losses and discounts of $12‚196 $ 266‚700 Net Sales $2‚360‚108 Cost of Goods Sold $1‚580‚360 1. The days’ sales in receivables is a. 53.1 b. 48.2 c. 43.1 d. 38.1 e. none of the answers are correct Ambience Company presents the following data for 2011. Receivables‚ end of year‚ less allowances for losses and discounts of $115‚960 $ 2‚370‚100 Receivables‚ beginning of year‚ less allowance for losses
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Rosfe Corlae D. Badoy‚ CPA‚ Ph.D. August 2‚ 2014 I. Statement of the Problem The financial statements of Amfac Inc. are given below: AMFAC INC. Balance Sheet As of December 31‚ XXXX Assets Cash 8‚000 Accounts Receivable‚ net 36‚000 Merchandise Inventory 40‚000 Prepaid Expenses 2‚000 Plant and Equipment‚ net 214‚000 Total Assets 300‚000 Liabilities & Equities Current Liabilities 30‚000 Long-term Liabilities
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ADMS 2200: Intro Marketing! January 29th‚ 2013 Review for Numerical Quiz 1 Formulas: 1. Percentage Change: •Change = (New Value - Old Value) / (Old Value) •Example: Sales grew from $30 billion to $31 billion. •($31 - $30) / $30 = 3.3% Change 2. New Value: •New Value = (Old Value) X (1+Percentage Change / 100) •Example: Sales in 2012 were $320‚000. Expecting sales to grow 18% •($320‚000) X (1.18) = $377‚ 600 3. Old Value: •Old Value = (New Value) / (1+Percentage Change / 100) •Example:
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UNIVERSITY OF CENTRAL LANCASHIRE Introduction to Finance and Accounting 2nd Semester Assignment Name: Maximos Nathanailidis Date: 28/4/2014 Table of Contents 1. Introduction The purpose of this report is to conduct a comparative ratio analysis of the financial statements of J. Sainsbury PLC and Tesco PLC for the year-ending 2013. The financial information that is provided from each company’s annual report and the comparison between them will help possible users
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Johnson (J&J) is run on an organizational wide basis. Efficiency ratios are also defined as asset turnover ratios (Finkler‚ Kovner & Jones‚ 2007). The asset turnover ratio measures how productive J&J is in managing all of its assets to generate Sales. This efficiency ratio is calculated by dividing sales by total assets by total revenue. For year 2010‚ J&J had an asset turnover of 0.6. Comparing J&J’s asset ratio to the industry‚ it is the same (Key Financial Ratios: Financial
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is measurement how to effectively a company to use and controls its assets. Its also quantify into seven categories for both pharmaceutical companies such as account receivable turnover‚ average collection period‚ inventory turnover‚ account payable turnover ‚account payable turnover in days ‚fixed asset turnover ‚total asset turnover. Profitability ratio is evaluate how well a company is performing by analyzing and how profit was earned relative to sales‚ total assets and net worth for both pharmaceutical
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7%‚ so in comparison to the industry‚ Coca-Cola’s investors receive a greater return on their investment. The days’ receivable ratio calculates the how many days on average it takes for a company to collect on its sales to customers in credit (http://www.zenwealth.com/BusinessFinanceOnline/RA/AssetManagementRatios.html) . First‚ one must determine the accounts receivables turnover ratio‚
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