![]() Hence, Fixed Asset turnover ratio for Walmart is 4.5 times Now that we have all the values, let us calculate asset turnover ratio for Walmart. Let us calculate Average Fixed Assets for Walmart Now, take a look at Walmart’s consolidated Balance Sheet. The Sales value given in the income statement is after reducing sales return, if any. In the case of Walmart, Net Sales can be easily calculated from the income statement. You can download the template for Walmart using the below option.īelow shown is the Consolidated Income Statement of Walmart. In our next example, let us calculate the Fixed Asset turnover ratio using excel. Hence, the Fixed Asset turnover ratio builds a relationship between the Fixed Asset base and the Revenue company derives from it. On the other hand, Company B is relatively more efficient since it is generating $2.8 per each dollar of Fixed Asset. ![]() Hence, per each dollar of Fixed Asset, it is able to generate only $0.9 Revenue. What this means is that Company A is not managing its Fixed Assets efficiently. Now that we know all the values, let us calculate the turnover ratio for both the companies.įixed Asset turnover ratio = Net Sales / Average Fixed Assets
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