- This topic has 3 replies, 2 voices, and was last updated 2 months ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hi again dear tutor, In your f3 paper book I see asset turnover is calculated dividing the revenue by total long term capital. there is another way of calculating it such as revenue is divided by average total assets. which one should be considered correct?
The total capital is equal to the net assets, and so both are correct (and give the same result). Which to use depends on the information available in the question.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘asset turnover ration’ is closed to new replies.