Question

Jol 6 206 3.12 5 4 12 onw 3.22 2.73 61-32 67,10 _-7011 67 tagy ne
0 0
Add a comment Improve this question Transcribed image text
Answer #1

lets first understand the terms used

PPE : The fixed asset turnover ratio formula is calculated by dividing net sales by the total property, plant, and equipment net of accumulated depreciation.

So as you can see for A company, the fixed asset turnover is decreasing slightly every year from 2014 to 2016.

In Company B, the fixed assets turnover is deteriorating much faster than Company A.

Hence the assets needs to be added to increase the turnover.

Every year the percentage usage of the machine is reducing, hence we can say that it is not utilized fully and hence it is facing an asset turnover issue.

Add a comment
Know the answer?
Add Answer to:
Jol 6 206 3.12 5 4 12 onw 3.22 2.73 61-32 67,10 _-7011 67 tagy ne Jol 6 206 3.12 5 4 12 onw 3.22 2.73 61-32 67,10 _-7011 67 tagy ne
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT