Calculate the Total Asset Turnover

Question 4 send the total addition turnover, the P, P, & E Turnover, and the intangible asset turnover for each of the past two years. Are these turnover ratios increasing or lessen? What might explain these trends? fare plus Turnover is a financial ratio that measures the efficiency of companys use of its assets to product sales agreements. It is a measure of how efficiently management is using the assets at its disposal to conjure sales.The ratio helps to measure the productivity of a companys assets. add Asset Turnover is calculated by Net Sales dissever by Total Assets. We had to calculate the Total Asset Turnover, the Property, Plant, and Equipment Turnover, and the impalpable Asset Turnover Ratios in 2010 and 2011 for Johnson and Johnson Company. The below table shows the above ratios in 2010 and 2011. 2010 2011 Total Asset Turnover = 61,587 = 60% 65,030 = 57% 102,908 113,644 P, P, & E Turnover = 61,587 = 4. 3x 65,030 = 4. 41x 14,553 14,739 Inta ngible Asset Turnover = 61,587 = 1. 92x 65,030 = 1. 89x 32,010 34,276 For the Total Asset Turnover, there is a decrement from 60% in 2010 to 57% in 2011. For the Property, Plant, and Equipment Turnover, there is an increase from 4. 23 in 2010 to 4. 41 in 2011. For the Intangible Asset Turnover, there is a decrease from 1. 92 in 2010 to 1. 89 in 2011. Increases in the asset turnover ratio over time may signalize a company is growing into its capacity. A decreasing ratio may indicate the opposite. Asset purchases made in anticipation of coming growth (or the sale of unnecessary assets in anticipation of declining growth) can suddenly and somewhat artificially change a companys asset turnover ratio.