Non-current asset turnover: Difference between revisions
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imported>Doug Williamson (Create page. Source: Financial Accountancy webpage http://www.financialaccountancy.org/financial-ratios/non-current-asset-turnover/) |
imported>Doug Williamson (Add example.) |
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''Financial ratio analysis.'' | ''Financial ratio analysis.'' | ||
Non-current asset turnover is | Non-current asset turnover is a management efficiency ratio. | ||
It measures the annual revenue generated per unit of non-current assets. | It measures the annual revenue generated per unit of non-current assets. | ||
''Revenue ÷ non-current assets'' | Non-current asset turnover is calculated as: | ||
''Revenue '''÷''' non-current assets'' | |||
<span style="color:#4B0082">'''''Non-current asset turnover example'''''</span> | |||
Revenue for the period is £40 billion and non-current assets are £20 billion. | |||
Non-current asset turnover = £40 bn / £20 bn | |||
= '''2''' | |||
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== See also == | == See also == | ||
* [[ | * [[Management efficiency ratio]] | ||
* [[Non-current assets]] | * [[Non-current assets]] | ||
* [[Revenue]] | * [[Revenue]] | ||
Latest revision as of 13:52, 6 February 2019
Financial ratio analysis.
Non-current asset turnover is a management efficiency ratio.
It measures the annual revenue generated per unit of non-current assets.
Non-current asset turnover is calculated as:
Revenue ÷ non-current assets
Non-current asset turnover example
Revenue for the period is £40 billion and non-current assets are £20 billion.
Non-current asset turnover = £40 bn / £20 bn
= 2
The greater the non-current asset turnover, the greater the efficiency with which non-current assets are being used in the business.
