Explain different ratios that measure the performance of the store operations.

Fixed Assets Turnover Ratio

The fixed assets turnover ratio measures how efficiently or effectively a company employees its fixed assets to generate sales. Trend analysis is beneficial in making sense of this ratio. Ideally the user would like to see a rising trend which could indicate efficiency or less required investment for a given sales volume. Conversely, a ratio result in a declining trend could indicate overspending or issues on the revenue side. Factors such as book value, age of equipment or, less often, different capital structures or strategic differences in methods of production may make industry comparison difficult.

Measures relationship between sales and fixed assets

Generally favorable: higher result

Measure of: activity and efficiency

Indicates how well a company utilizes property, plant & equipment to generate revenue

Sales or Revenue per Employee

Sales or revenue per employee uses average employee figures for the reporting period analyzed compared to sales. Ratio results are highly divergent and _________ _______ ______ _____ ________ _______ __________ ____ ___ _____.
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