Home › Finance Formulas › Break Even Point Formula › About Rev Break Even Point Formula Design Del Drive All Aspects The Process Analysis Questions And Solutions Quantity Period Excel Accounting Business Cash Flow Calculator Explain

Finance Formulas / July 19, 2018 / Avalynn Orr

The depreciable value of your fixed asset is based on the amount you pay for it minus the amount you'd earn selling it for scrap at the end of the depreciation period. Start with the initial cost, or the amount you paid. Subtract the salvage value that you anticipate being able to earn back at the end of the item's useful life.

Generally speaking, the higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per dollar of assets. The asset turnover ratio tends to be higher for companies in certain sectors than in others. Retail and consumer staples, for example, have relatively small asset bases but have high sales volume and, thus, often yield the highest asset turnover ratio.

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