Question
Asset turnover (ATO) is measured by Revenue / Average total assets . Assume ATO is currently 1.5 times p.a. and that the cash balance remains
Asset turnover (ATO) is measured by Revenue / Average total assets.
Assume ATO is currently 1.5 times p.a. and that the cash balance remains positive.
State the effect the following event occurring on the reporting date would have on this ratio.
EVENT: The repayment of principal on an interest-only loan
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Investments Analysis And Management
Authors: Charles P. Jones, Gerald R. Jensen
14th Edition
1119578078, 978-1119578079
