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Monday, July 4, 2011

::: vuaskari.com ::: Important update regarding Ratios

I think we should follow VU Instructor after a lot of debates i have concluded this
i am updating u all that consider Operating Fixed Assets only in Fixed assets turnover ratio not Long term Assets.
and in NBP case don't take 2010 operating fixed assets shorter than one year as current assets because they are long term assets but may be due to maturity they seems short term in 2010 so consider whole amount as long term assets.
Sorry for these changing from my side this all just due to the reason of VU instructor multiple replies.
but now its sure please ignore Total Assets - Current Assets= Fixed Assets formula
just consider operating fixed assets as fixed assets in this formula

FIXED ASSETS TURN OVER RATIO:
=Net Sales/ Operating Fixed Assets




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MAHA SHAH

MBA(FINANCE) 4th SEMESTER

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