To test hypotheses 1, 2, and 3 (impact of cash conversion cycle on invested capital, firm performance, and liquidity), stepwise regression models were analyzed that included firm size and industry as the control variables, cash conversion cycle as the independent variable, and invested capital,
asset turnover, return on invested capital, and liquidity as the dependent variables (see Tables 2a and 2b).
Companies located in industrial concentrations may see a larger increase in sales as opposed to those of firms not located in concentrated areas (Federacao das Industrias do Estado de Sao Paulo [FIESP], 2008), which would directly affect the
asset turnover.
Massimo cited an example wherein one top-bracket investor invested $1 million in a regular mutual fund that has a before-tax return of 8% and an
asset turnover of 100%.
The study investigates the effects of
Asset Turnover, Gearing, Current asset to Total Asset, Trade debtors to total asset, Current liability to total asset, inventory days, accounts payable and current ratio on Profitability of Indian Manufacturing companies.
Table 1: Advanced DuPont Ratios for Target, Walmart, and Costco, 1998-2007 (All ratios are expressed as percentages, except for
asset turnover and debt/equity.
For example, a cost leader like Wal-Mart may generate a relatively low net operating income to sales but balance that against a relatively high
asset turnover.
Target achieves its operating performance with higher profit margins but lower operating
asset turnover.
The average local
asset turnover for the top 100 increased from 3.
Our asset strategy needs to relentlessly evaluate the best approach for the company as far as asset purchasing,
asset turnover and regional asset deployment while at the same time supporting the exceptional standard of customer satisfaction we provide to our clients on every job we do throughout the world.
It is determined by the return on assets (ROA) and the total
asset turnover (ROE = ROA X total
asset turnover).
The measures of operational efficiency include days of sales outstanding, inventory turnover, days cost of goods sold in inventory,
asset turnover, and net receivables turnover flow.
Under the direction of its president Kevin Brady, Satellite Logistics Group's in-depth understanding of the beverage industry, led it to develop several distribution systems for its clients, including the Kegspediter[R] Keg Asset Management System According to Brady, this system improves the client's ROI by optimizing
asset turnover.
