Coronado Company reported net sales of $555000, net income of $71900, beginning total assets of $239000, and ending total assets of $261000. What was the company's asset turnover?
• ASSETS TURNOVER :- Asset turnover ratio measures the value of a company’s sales or revenues generated relative to the value of its assets. The Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.
Asset Turnover = Sales / Average Total Assets
SALES = $ 5,55,000
AVG. TOTAL ASSETS = $2,39,000 + $ 2,61,000 / 2
= $ 2,50,000
Assets turnover ratio = $ 5,55,000 / $ 2,50,000
= 2.22
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