ASSET TURNOVER RATIO Definition

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ASSET TURNOVER RATIO is a general measure of a firms ability to generate sales in relation to total assets. It should be used only to compare firms within specific industry groups and in conjunction with other operating ratios to determine the effective employment of assets. Formula: REVENUE/ASSETS.

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STRANDED PLANT is a cost that has been incurred, but can not be reversed. Usually referred to as a sunk cost.

CAPITAL IN EXCESS OF PAR see ADDITIONAL PAID IN CAPITAL.

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