130 :- Property, Plant and Equipement and Intangible Assets (at cost) Rs 30,00,000; Accumulated Depreciation Rs 5,00,000; Trade Investments Rs 2,50,000; Current Assets Rs 11,00,000; Current Liabilities Rs 8,50,000; Cash Revenue from Operations Rs 10,00,000; Credit Revenue from Operations Rs 40,00,000.
Calculate Net Assets Turnover Ratio.
Solution :-
Net Assets = Property, Plant and Equipement and Intangible Assets (At Cost) – Accumulated Depreciation + Trade Investment + Current Assets – Current Liabilities
= 30,00,000 – 5,00,000 + 2,50,000 + 11,00,000 – 8,50,000
= Rs 30,00,000
Revenue from Operation = Cash Revenue from operations + Credit Revenue from Operation
= 10,00,000 + 40,00,000
= Rs 50,00,000
Net Assets Turnover Ratio = Revenue from Operation/Capital Employed (Net Assets)
= 50,00,000/30,00,000
= 1.67 Times