Asset turnover ratio calculates efficiency of asset use to generate sales; formula: Total Sales ÷ Average Assets. Higher asset turnover indicates better capital use and operational efficiency relative ...
Many small businesses struggle with determining the correct prices for their items. If the items are priced too low, the business may sell a higher volume but reap less profit per unit. Depending on ...
Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a ...