Accounting Analysis I: The Role of Accounting as an Information System | Online Course Support

What is the asset turnover ratio for Illini Company for 2016?


Asset turnover ratio= $8,000,000($4,300,000+3,700,000)/2

The asset turnover ratio also is slightly better than the industry average (2 times per year versus 1.8 times). These ratios indicate that Illini Company is able to generate more sales per dollar invested in inventory and in total assets than the industry average.

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