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Split the Total Asset Turnover Ratio: fixed asset and current asset turnovers
Let's take a more detailed look at asset usage and efficiencies now by splitting down the total asset usage ratio into its component parts. We know that total asset turnover matches the turnover of a business with all of the assets it has used to generate that turnover - the bigger the value of the ratio the better. We can break this ratio into two to start with so that we can see in more detail how those assets have been used. The two ratios we will look at are:
| Fixed Asset Turnover | = | Turnover |
| Fixed Assets |
| Current Asset Turnover | = | Turnover |
| Current Assets |
Let's find the data for the Carphone Warehouse, do the calculations and then discuss what we have found.
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