Asset turnover — OpenTuition Forums

KKanan6y ago

Hi Dear Tutor, I see sometimes asset turnover ratio is calculation in the following way sales dividedn into total assets/2 or capital employed?which one is a correct approach?

John MoffatTutor6y ago#1

Unless the question says to do different, it is sales / capital employed (and , of course, capital employed is equal to total assets les current liabilities).

KKanan6y ago#2

Thank you very much

John MoffatTutor6y ago#3

You. are welcome :-)

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