Calculate the efficiency of company towards use of asset that help in sales.

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a.

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Calculate the efficiency of company towards use of asset that help in sales.

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Asset turnover ratio is used to determine the efficiency of the company towards use of asset towards generation of sales.

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Asset turnover ratio is used to determine the asset’s efficiency towards sales.

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Formula:

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Assetturnover</

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b.

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Explain the ratio that is used to find out how near the sale is the inventory on hand.

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c.

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Explain the ratio used to find out the dollar of net income were earned for each dollar invested by the owners.

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d.

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Explain the ratio that helps to meet the interest charges as it falls due.

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