Automotive Industry: OEM's Asset Turnover Ratios
(Emerging Markets), 2007-2011 60
Despite the capital expenditure cut, AUO will maintain its investments in advanced technology and higher-value products, in order to achieve higher asset turnover ratios
and to enhance the Company's long-term competitiveness.
The result could be lower asset turnover ratios
, lower return on capital, and an increase in debt-toequity ratios, which could impact borrowing capacity or compliance with loan covenants.
They hypothesize a connection between the Du Pont factors, net operating income to sales and asset turnover ratios
, and a firm's competitive strategy (cost leadership or differentiation).
H-6: The efficiency of a company as measured by inventory, debtors, and asset turnover ratios
positively influences its profitability.
Other commodity groups which do less processing--such as poultry/livestock cooperatives--have higher fixed asset turnover ratios
There is no evidence to suggest that restructuring improves asset turnover ratios
We also find that buyer firms experience a decline in the return on assets and asset turnover ratios
Parent and subsidiary firms not affiliated with any keiretsu groups, however, had similar asset turnover ratios
Circuit City has closed a number of its stores just before its fiscal year end, a practice that could overstate important performance measures such as ROA, asset turnover ratios
and same store sales.
On the other hand, the Company will continue to strengthen the strategic alliance with customers, and hope to improve the product profitability as well as asset turnover ratios
, which could eventually contribute to a better return on equity (ROE).
Ang, Cole, and Lin (2000) use asset turnover ratios
to measure agency costs and find a significant inverse relation with managerial shareholdings.