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Turnover Ratio For Axiata

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Total asset turnover

=sales/(total asset) 0.41 times 0.42 times 0.38 times
Fixed asset turnover

=sales/(fixed asset ) 0.55 times 0.54 times 0.46 times
Time series

Total asset turnover

Total asset turnover is a ratio that narrates the amount of sales generated for every unit of the asset. In 2012 , an asset turnover ratio for Axiata is 0.41 means Axiata can produce $0.41 for every $1 worth of assets. In general, the higher the ratio means the company is more effective at using its assets. But whether a particular ratio is good or bad differs on the industry in which your company works. Furthermore,some industries are simply more asset-intensive than others ,so their total turnover ratios will be lower.

In 2014 Axiata analyzes that its asset turnover ratio is 0.38 which has declined from 0.42 in the year 2013. Companies with a decreasing asset turnover ratio must analyze their …show more content…

Generally, a high fixed-asset turnover ratio is better for small business indicates that Axiata generate strong sales for the level of fixed assets their use in 2012, but it can have some negative implications in some situation.

In year 2012 Axiata with fixed asset ratio 0.55 which has the highest ratio compare with the following year. With the highest ratio in the year 2012, Axiata is doing an effective job of generating sales with a relatively small amount of fixed assets and selling off excess fixed asset capacity. After 2012, decline in the ratio can indicate Axiata over interested in fixed asset such as equipment or machine. The possible cause to help increase lower ratio such as provide new products or services that require more than traditional. The concept of the fixed asset turnover ratio is more valuable to an outside participant, who wants to know how well a Axiata is employing its assets to generate

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