Long description

 

Operating Return on Assets

=

Operating Profit Margin

X

Total Asset Turnover

Equation

 

=

 

X

 

(Net Operating Income or EBIT/

(Net Operating Income or EBIT/

(Sales/ Total Assets)

Total Assets)

Total Assets)

 

H. J. Boswell

19.40%

=

14.20%

X

1.37

Peer Group

17.80%

=

15.50%

 

1.15

 

Accounts Receivable Turnover

 

Inventory Turnover

 

Inventory Turnover

Equation

(Annual Credit Sales/ Accounts Receivable)

=

(Cost of Goods Sold/ Inventory)

X

(Sales/

Net Plant and Equipment)

H. J. Boswell

16.67

=

5.8

X

2.03

Peer Group

14.6

=

7

X

1.75

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