Total Asset Turnover Ratio

• Total Asset Turnover Ratio represents the

amount of sales generated per dollar invested in
the firm s assets.

Total Assets Sales $2, 700 million

= = = 1.37 times
Turnover Total Assets $1, 971 million
Peer-group total asset turnover = 1.15 times
 Fixed Asset Turnover Ratio
• Fixed asset turnover ratio measures firm s
efficiency in utilizing its fixed assets (such as
property, plant and equipment).

Fixed Asset Sales $2, 700 million

= = = 2.03 times
Turnover Net Plant and Equipment $1, 327 million
Peer-group fixed asset turnover = 1.75 times
Asset Management Efficiency Ratios:
Summary
The following grid summarizes the efficiency of
Boswell s management in utilizing its assets to
generate sales. Overall, the managers utilized the
firm s total investment in assets efficiently.
Asset Utilization Efficiency Boswell Peer Group Assessment

Total asset turnover 1.37 1.15 Good

Fixed asset turnover 2.03 1.75 Good

Receivables turnover 16.67 14.60 Good

Inventory turnover 5.36 7.0 Poor