![]() Important : a) We should calculate current assets turnover ratio with other turnover ratios like stock turnover ratio, creditor turnover ratio, debtor turnover ratio, working capital turnover ratio and fixed assets turnover ratio. It means net sales is $ 820 on the $ 100 invested current assets. ![]() So, its current asset turnover is = 443 /54 X 100 = 820%. For example Walmart company's 2012 sale is $ 443 Billion. It means, we have become successful for doing $ 20 sales when we have invested our money in the form of different current assets like inventory, short term investments, prepaid expenses, outstanding incomes, sundry debtors whose cost is $ 100.Ģ. For example current asset turnover ratio is 20%. When we divide the net sales with current assets and multiply with 100, we find that value net sale which has been possible due to $ 100 investment of current assets.ġ. Current assets turnover ratio shows the relationship between net sales and current assets.
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