(SOLVED) following figures have been extracted from the financial statements of a company. Non-current assets £80 million Current assets £40 million
Discipline: Finance
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 1-2)
Paper Format: APA
Pages: 1
Words: 262
Question
The
following figures have been extracted from the financial statements of a
company.
Non-current assets £80 million
Current assets £40 million
Current liabilities £20 million
Sales £200 million
Cost of
goods sold £75 million
Operating expenses £45 million
Calculate the following
financial ratios:
a. Total net asset turnover ratio
b. EBIT percentage
c. ROTNA
Expert Solution Preview
a. Total net asset turn over ratio:
Total net asset turnover ratio is calculated to determine the efficiency of the company's sales with respect to its assets in a year.
Total net asset turnover ratio = Net sales / Total assets
Total assets = Current assets + Non current assets
- 40+80
= 120
Total net asset turnover ratio = 200/120
= 1.66
Answer:
Total net asset turnover ratio is 1.66
b. EBIT Percentage:.......
