Ask Question
31 January, 00:22

Nvidia Corporation, a global technology company located in Santa Clara, California, reported the following information in its 2017 financial statements ($ in millions) : 2017 2016 Balance sheets Property, plant, and equipment (net) $ 521 $ 466 Income statement Net sales for 2017 $ 6,910 Required: 1. Calculate the company's 2017 fixed-asset turnover ratio

+4
Answers (1)
  1. 31 January, 01:17
    0
    14

    Explanation:

    Asset turnover is the ratio of revenue to average assets of a company. It is a financial indicator that shows how much revenue a company generates in an accounting period for each $ 1 invested in assets (fixed asset in this case).

    Mathematically,

    Fixed Asset turnover = Revenue / Average fixed assets

    where average fixed assets

    = (Opening balance + closing balance) / 2

    Average fixed asset

    = ($ 521 + $ 466) / 2

    = $493.5 million

    2017 fixed-asset turnover ratio

    = $ 6,910/$493.5

    = 14

    It means that the company generated $14 for every $1 invested in fixed assets during the period.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Nvidia Corporation, a global technology company located in Santa Clara, California, reported the following information in its 2017 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers