Ratios Notes

Total assets turn salestotal assets 2 measures the

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Unformatted text preview: Fixed Assets: The Fixed Assets Turnover Ratio 1. Fixed assets turn = Sales/Net fixed assets 2. Measures how effectively the firm uses its plant & equipment. 3. Because assets are booked at cost, inflation can affect the validity of comparing one firm to another (newer versus older) Evaluating Total Assets: The Total Assets Turnover Ratio 1. Total assets turn = Sales/total assets...
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