Return on equity is a measure of financial performance calculated by dividing net income by shareholders’ equity. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. https://personal-accounting.org/ We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Locate the value of the company’s assets on the balance sheet as of the start of the year.

This results in obsolete inventory or dead stock that increases holding costs, and costs time and money to move out. Whether you store your products yourself or partner with a3PL, understanding the data around your inventory and operations can help you increase efficiency, and maximize cash flow. Generally, a higher ratio is favored because it implies that the company is efficient in generating sales or revenues from its asset base. A lower ratio indicates that a company is not using its assets efficiently and may have internal problems. This player would have a lower ratio than a player who focuses on assists. A player who creates more assists and fewer turnovers may have better ball control.

Defensive Rebounding Percentage (DRB%) = DRB / MP / (TmDRB + OppORB) * TmMP / 5

Sage 300 CRE Most widely-used construction management software in the industry. Sage Intacct Advanced financial management platform for professionals with a growing business. And, I suppose, it could still be argued that this adjustment is too small since taking pull-up jumpers is less likely to result in turnovers than any creation endeavors. It can be used to compare player’s abilities and performance regardless of position or minutes played.

Because the inventory turnover ratio speaks to how quickly a business is selling through its inventory, some businesses use it to check the pulse of sales performance. Though ABC has generated more revenue for the year, XYZ is more efficient in using its assets to generate income as its asset turnover ratio is higher. XYZ has generated almost the same amount of income with over half the resources as ABC. TOTurnoversThe number of times a team or player loses possession of the ball without attempting a field goal or free throw .

Formula and Calculation of the Asset Turnover Ratio

For example, if Player A is 4/10 with two 3-pointers and Player B is 5/10 with zero 3-pointers, both players would have the same number of points . DREBDefensive ReboundsThe number of rebounds a team or player collects while on defense.DREB%Defensive assist to turnover ratio calculation Rebound PercentageThe percentage of available rebounds that a team secures while on defense. She gives an example of small firm Maria’s Bakery, which has expanded its customer base by extending credit to small business owners.