One thought on “Efficiency Ratios: Inventory, AR, Average Collection, Fixed Asset, Total Asset Turnover”

  1. when calculation of Fixed Asset Turn over ration, it has been taken “Net Fixed Assets” which means WDV.
    Please kindly explain in a situation where WDV is Zero, but the particular Fixed Assets is generating income, in this type of situation what is the best method of calculation of the above efficiency ratio? (do we need to take the market value or revalue as mandatory), please kindly update, thanks

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