Answer:
Total assets turnover ratio (TATO): 2.38
Explanation:
Total assets turnover ratio (TATO) helps investors understand how effectively companies are using their assets to generate sales. Total assets turnover ratio is calculated by using following formula:
Total assets turnover = Total Sales or Revenue/ Average Total Assets
where:
Total Sales= Annual net sales
Average Total Assets = (Assets at the beginning of year +Assets at the end of year )/2
In Ryngard Corp:
Total Sales: $38,000
Total assets: $16,000
Total assets turnover = $38,000/$16,000 = 2.38
