Whitt's bbq has sales of $1,318,000, a profit margin of 7.4 percent, and a capital intensity ratio of .78. what is the total asset turnover rate
Whitt's bbq has sales of $1,318,000, a profit margin of 7.4 percent, and a capital intensity ratio of .78. what is the total asset turnover rate
Answercustomer;
answer; career pathways;
Based on the given figures above, the total asset turnover rate is 1.28. To get the 1.28, you need to use the below formula:
Total asset turnover= 1/ capital intensity ratio
The capital intensity ratio given is 0.78
Therefore you calculation should be:
Total asset turnover = 1 / .78
Total asset turnover = 1.28