#Total asset turnover ratio professional

Upon doing so, we get 2.0x for the total asset turnover. The company's products include six key categories: running, NIKE basketball, the Jordan brand, football, training and sportswear (sports-inspired lifestyle products). To calculate the ratio in Year 1, we’ll divide Year 1 sales (300m) by the average between the Year 0 and Year 1 total asset balances (145m and 156m).

#Total asset turnover ratio professional

Nike's 'swoosh' logo and 'just do it' tagline are widely recognized across the world, while its association with celebrity sportspersons, such as Michael Jordon and Roger Federer as well as top professional and college teams ensures a strong brand recall in the key U.S., U.K., Japanese and Chinese markets.

NIKE is the global leader in athletic footwear, apparel, equipment and sports-related accessories. Always compare your company's financial ratios to the ratios of other companies in the same industry. This ratio will vary by industry, as some industries are more capital intensive than others. Asset-intensive companies such as mining, manufacturing, and so on will generally have lower asset turnover. The company's total asset turnover for the year was 1.5 (net sales of 2,100,000 divided by 1,400,000 of average total assets). The test results show that the current ratio, debt to equity, total asset turnover, and profit margin have a significant influence on profit growth. This is different from the fixed assets turnover ratio. (AAPL) had Asset Turnover of 1.04 for the most recently reported fiscal year, ending. The total assets turnover ratio measures the sales generated per rupee of assets and is an indication of how efficient the company is in utilizing its assets to generate sales. This indicates that for company X, every dollar invested in assets generates 4 in sales. Asset Turnover Ratio is calculated as: Asset Turnover Ratio Net Sales / Average Total Assets. Calculated as: Total Revenues / Total Assets. Average Total Assets (20000 + 30000) / 2. With the help of a strong brand portfolio, including Nike Pro, Nike Golf, Nike and Air Jordan, it offers premium, well-designed and high-quality products, in line with the latest customer trends. The Asset Turnover ratio is an indicator of the efficiency with which a company is deploying its assets.

However, each component of this formula represents another formula in and of itself. It compares the dollar amount of sales (revenues) to its total assets as an annualized. Another way to think of it is to assume every 1 in assets generates 10 cents in net sales revenue. The asset turnover ratio measures the efficiency of a company's assets in generating revenue or sales. is engaged in the business of designing, developing and marketing of athletic footwear, apparel, equipment and accessories, and services for men, women and children worldwide. Total Asset Turnover 100,000 / 1,000,000 Total Asset Turnover 0.1, or 10 This means that the company’s assets generate 10 of net sales per their value.