The international boot company has income from operations of $80,000, invested assets of $500,000, and sales of $1,525,000. what is the investment turnover?
The formula of the investment turnover is net sales / (capital + outstanding debt). The capital here is the shareholders' equity. Applying the formula, we have 500,000 / 1,525,000 = 0.327, rounding up to 0.33.
