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Operating Efficiency Ratios – Meaning, Formula, Calculation & Interpretations [Video]

Operating Efficiency Ratios – Meaning, Formula, Calculation & Interpretations

This tutorial covers the most important aspects of the operating efficiency ratios. You will learn precisely asset turnover ratio, net fixed asset turnover ratio, and equity turnover ratio. Further, we have discussed in detail their meanings, formulas, calculations, and interpretations.

What are Operating Efficiency Ratios?
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Operating efficiency ratios analyze how efficiently a company uses its resources such as assets and shareholder’s equity to generate income.

Operating Efficiency Ratios Formulas
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– Asset Turnover Ratio = Net Sales / Average Total Assets
– Net Fixed Asset Turnover Ratio = Net Sales / Average Net Fixed Assets.
– Equity Turnover Ratio = Net Sales / Average Shareholder’s Equity

Relevance and Use
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– Asset turnover ratio is a metric that measures how effectively a company uses its assets to earn revenue.
– Net fixed asset turnover ratio measures how well a company utilizes its machines and equipment to generate revenue.
– Equity turnover ratio is used to determine whether the company is generating enough revenue to justify the shareholders’ holding of its equity.

For more details, you can refer to our articles –
https://www.wallstreetmojo.com/asset-turnover-ratio/
https://www.wallstreetmojo.com/fixed-asset-turnover-ratio-formula/
https://www.wallstreetmojo.com/equity-turnover-ratio/

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Resources for Accountants

A&A Update with Brad Muniz - 5/3/22 | IssuesWatch Podcast [Video]

This episode covers changes to employee benefit plan audits, FASB’s proposed updates to reference rate reform guidance, important ERC accounting guidelines and PCAOB, SEC and U.S. DOL updates.*** This episode qualifies for nano CPE credit. Find out more at https://njcpa.org/nano. ***Additional resources:• FASB Proposes Updates to Reference Rate Reform Guidance - https://www.fasb.org/page/getarticle?uid=fasb_Media_Advisory_04-20-22• SAS 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA - https://us.aicpa.org/content/dam/aicpa/research/standards/auditattest/downloadabledocuments/sas-136.pdf• PCAOB proposed requirements for accounting estimates and using specialists - https://pcaobus.org/news-events/news-releases/news-release-detail/pcaob-requests-comment-on-impact-of-auditing-requirements-related-to-estimates-and-specialists • U.S. Department of Labor: Compliance Assistance Release No. 2022-01 - 401(k) Plan Investments in “Cryptocurrencies” - https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/plan-administration-and-compliance/compliance-assistance-releases/2022-01.pdf• SEC Proposes Rules to Enhance Disclosure and Investor Protection Relating to Special Purpose Acquisition Companies, Shell Companies, and Projections- https://www.sec.gov/news/press-release/2022-56#IssuesWatch #podcast #accounting #audit #auditing #erisa #employeebenefitplans #ebpaudits #fasb #aicpa #pcaob #sec #spacs========================================Watch all IssuesWatch Podcast episodes at https://www.youtube.com/playlist?list=PLJ2syuG5TiiZOFQdURLJUDzGJVz17ZPth SUBSCRIBE FOR MORE CPA VIDEO TIPS AND NEWS - https://www.youtube.com/c/njcpa?sub_confirmation=1LET'S CONNECT:NJCPA http://www.njcpa.orgFACEBOOK https://www.facebook.com/njscpaTWITTER https://twitter.com/njcpaLINKEDIN https://www.linkedin.com/grp/home?gid=165152INSTAGRAM https://www.instagram.com/thenjcpa

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Inspiring Short Stories | The House with the Golden Windows | Motivational & Inspirational Video [Video]

The House with the Golden Windows. Inspiring short stories. Motivational & inspirational video. Best short inspirational videos. Inspirational quotes about life and love.The motivational stories and famous anecdotes presented in this video are excerpts from our book: Top 100 motivational stories: the best inspirational short stories and anecdotes of all time. Get the book here: https://www.bizmove.com/inspiration/m9b.htm

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Inspiring Short Stories | The Angry Father [Video]

The Angry Father. Inspiring short stories. Motivational & inspirational video. Best short inspirational videos. Inspirational quotes about life and love. The motivational stories and famous anecdotes presented in this video are excerpts from our book: Top 100 motivational stories: the best inspirational short stories and anecdotes of all time. Get the book here: https://www.bizmove.com/inspiration/m9b.htm

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IFRS CPE Courses [Video]

Check out our IFRS CPE at - https://www.cpethink.com/ifrs-cpe-for-cpasToday, we're going to go over the IFRS CPE courses for CPAs course list on CPE think.com. IFRS, which stands for International Financial Reporting Standards refers to a set f International Accounting Standards in a global economy that US companies sometimes need to be aware of and how they compare to GAAP. We have 16 courses that deal with IFRS issues. We have comparison courses, business combination of several that we have a series here of seven courses that a lot of people have a lot of positive feedback on. We've got a comparison course here real short one, US GAAP versus IFRS new guidelines, new lease accounting standards and how that applies or how IFRS fits into that. And then US GAAP and IFRS revenue recognition and business combinations. Any questions? Click the chat bubble down in the lower right. Let us know. To Contact Us please go to https://www.cpethink.com/contact-us or just open a chat on any page on our site.