Inflation

This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.

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December 8, 2015 at 11:04 pm #289373
rustamrakhmatov27
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dear sir, in times of rising prices, the historic revenue is too high or too low?
ROCE?
Asset turnover?

just woke up after coming from F7 exam:)
getting ready for tomorrow f5. Worried.
December 9, 2015 at 11:02 am #289542
MikeLittle
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“too high or too low” ?

Compared with what?

Revenue is at today’s prices whereas assets are at historic (lower) prices so asset / turnover is higher than it would be if prices had not risen

Good luck in F5
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