Business Administration - Management FIS403 Lecture 3: Chapter 3 - 4

31 views3 pages

30 May 2018

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Asset Utilization Formulas

Capital Asset Turnover = Sales

Capital

Assets

Total Asset Turnover = Sales

Total

Assets

Magna Asset Utilization

2011 2012 2013 2014

2015

Payables Period 54.2 56.8 55.6 57.1 65.2

Capital Asset Turn 7.1 6.5 6.5 6.6 5.5

Total Asset Turn 2.01 1.94 1.99 2.03 1.70

Liquidity Ratios

Also known as short term solvency ratios

Purpose:

Used to judge a company’s ability to meet its short-term

commitments and liquidity. Can they pay their bills?

You are calculating a ratio not a % or $amount

Liquidity Ratios

find more resources at oneclass.com

Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get access