Latest Free Templates

Sunday, April 10, 2011

Sales to Capital Employed Ratio

Definition: Sales to Capital Employed Ratio is used to measure the firm's ability to generate sales revenue by utilizing its assets. A higher ratio is preferable to lower one (retail companies such as supermarkets tend to have higher ratios).

Formula:
Sales to Capital Employed Ratio = (Sales / Capital Employed ) * 100%

Example:
Universal Ltd has the following data:
Land and buildings $500,000

0 comments:

Post a Comment