Analyzing, fixed asset turnover three years The following information relates to The Walt Disney Company (Disney), an

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Analyzing, fixed asset turnover three years The following information relates to The Walt Disney Company (Disney), an entertainment company (amounts in millions):

a. Compute the used asset turnover for each year.

b. How well has Disney managed its investment in fixed assets over the three years?

2007 2006 2005 $5,970 3,193 406 Sales Cost of Goods Sold $5,650 3,038 $5,179 2,806 Average Inventory 380 415
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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