To assess the efficiency of the enterprise's use of available resources, regardless of the sources of their formation, the asset turnover ratio is used. It characterizes the number of complete cycles of production and circulation for which the enterprise makes a profit.
Instructions
Step 1
Fill in the balance sheet of the company in the form No. 1. To calculate the asset turnover ratio, the data of sections 1 and 2 of the reporting are used. Show information about intangible assets, fixed assets, construction in progress, investments, stocks, raw materials, cash and receivables. Summarize the sections on lines 190 and 290, then add up and get the balance of the asset, which is reflected in line 300.
Step 2
Draw up a profit and loss statement of the enterprise in the form No. 2. To calculate the asset turnover ratio, you need the value of line 010. It contains information about the company's revenue from the sale of goods, the provision of services and the performance of work. This line is formed on the basis of accounting as the sum of all credits on account 90.1 "Revenue" less debit on accounts 90.3 "Value added tax", 90.4 "Excise" and other obligatory payments.
Step 3
Calculate the asset turnover ratio, which is equal to the ratio of proceeds from product sales to the total value of the assets of the enterprise. As a result, you get a ratio that shows the number of monetary units of goods sold per unit of assets.
Step 4
Analyze the resulting value and determine the nature of the turnover of funds at the disposal of the enterprise. The higher this indicator, the more revenue the company receives from each unit of the asset value. It is recommended to calculate the ratio for each reporting period and conduct a comparative description.
Step 5
If the asset turnover is multiplied by the net profit ratio, then it is possible to determine the degree of profitability of the company's tangible assets, which is also used in financial analysis.
