Non-current asset turnover: Difference between revisions
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It measures the annual revenue generated per unit of non-current assets. | It measures the annual revenue generated per unit of non-current assets. | ||
Non-current asset turnover is calculated as: | |||
''Revenue '''÷''' non-current assets'' | ''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''' | |||
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.
