The Asset Turnover Ratio is an indicator of the performance of a business in terms of utilising its assets to create revenue. In terms of an Asset Turnover Ratio the higher the ratio the more sales a business is creating based on the assets that they possess. This measure can be used to compare different company’s revenue generation efficiencies. In this calculation we find the sales revenue figure from your income statement and the business assets from the business balance sheet.If you are looking for help with your taxation needs we recommend the team at Glenfield Tax Accountants who are Accountants that see beyond the balance sheet. They're available at their website at https://www.taxshop.co.nz/ or by calling 09-443 7741.
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