The assets normally included in the calculation of average operating assets are cash, prepaid expenses, accounts receivable, inventory, and fixed assets. To find the average, follow these steps: Aggregate the balances in these accounts for the end of the preceding period..
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Average Depreciable Life = Ending Gross Investment / Depreciation Expense.
Total net operating capital represents all the current and non-currents assets used by a business in its operations. It includes inventories, accounts receivables .
Fixed assets turnover ratio also known as sales to fixed assets ratio is computed by dividing cost of sales by net fixed assets..
Return on assets is the ratio of annual net income to average total assets of a business during a financial year. It is a profitability ratio..