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    What is an ideal number for Asset Turnover?
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    (Original post by Indyy)
    What is an ideal number for Asset Turnover?
    It depends on the business. A capital intensive business with large amounts of stock (For example a manufacturing business) would benefit from a low asset turnover. Whereas labour intensive, service providing businesses would benefit from a high asset turnover.

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    (Original post by CharlieTT)
    It depends on the business. A capital intensive business with large amounts of stock (For example a manufacturing business) would benefit from a low asset turnover. Whereas labour intensive, service providing businesses would benefit from a high asset turnover.

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    Yeah, i got that from my textbook too but the figure in the example is compared to the UK average which is out of date?

    Maybe i worded my question wrong?

    What's the UK average for Asset Turnover?
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    (Original post by Indyy)
    Yeah, i got that from my textbook too but the figure in the example is compared to the UK average which is out of date?

    Maybe i worded my question wrong?

    What's the UK average for Asset Turnover?
    The only figure I can find from a google search is 3:2. In the end, an examiner isnt going to check for it considering how many papers they have to mark so you'll probably get a mark for application even if it is just made up.

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    (Original post by CharlieTT)
    It depends on the business. A capital intensive business with large amounts of stock (For example a manufacturing business) would benefit from a low asset turnover. Whereas labour intensive, service providing businesses would benefit from a high asset turnover.

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    Why would a capital intensive firm benefit from a low Asset turnover? Dont all businrsses aim too have the highest asset turn over because it meausres how much rev is generated from every 1£ of assets?
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    (Original post by Khilen)
    Why would a capital intensive firm benefit from a low Asset turnover? Dont all businrsses aim too have the highest asset turn over because it meausres how much rev is generated from every 1£ of assets?
    capital intensive firms have more assets to use so naturally their asset turnover will be less than labour intensive because the labour intensive firm will use less assets = higher figure for labour turnover.
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    (Original post by Khilen)
    Why would a capital intensive firm benefit from a low Asset turnover? Dont all businrsses aim too have the highest asset turn over because it meausres how much rev is generated from every 1£ of assets?
    And it's lower in a capital intensive business because the capital owned by a business is included in its 'Net Assets', and therefore decreasing the value of the turnover.


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    For 18 makers that end with 'to what extent do you agree with this view?'

    Do you do one point for and against and then evaluate?
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    (Original post by emgeesify)
    For 18 makers that end with 'to what extent do you agree with this view?'

    Do you do one point for and against and then evaluate?
    I read somewhere you do two for your viewpoint and one against it.

    Not entirely sure tbh
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    (Original post by emgeesify)
    For 18 makers that end with 'to what extent do you agree with this view?'

    Do you do one point for and against and then evaluate?
    Yes, If it asks for 'what extent', you have to give both sides of the argument.

    I usually start off my 18 mark essays like, 'To some extent, I believe that...

    When I start the against paragraph, 'However, to some extent I also believe that...

    It's useful to evaluate after each paragraph, so after you complete your 'For' paragraph, you should quickly provide some sort of evaluative conclusion or just give your opinion, as you may receive 1 or 2 marks for evaluation. The same should also be done for the 'Against' paragraph.

    I did this exam in January, however, I didn't do so good, ended up with a C...
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    Here's a good plan for each of the questions.

    Question 1

    Definition of topic
    Argument
    • Point
    • Evidence/Example
    • Evaluate

    Counter Argument
    • Point
    • Evidence/Example
    • Evaluate



    Question 2/3

    Introduction
    • Definition of topic
    • Relate the case study to the question

    Argument
    • Point
    • Evidence/Example
    • Evaluate
    • Link back to question

    Counter Argument
    • Point
    • Evidence/Example
    • Evaluate
    • Link back 4o question

    Concluding Paragraph
    • Answer/Address
    • It Depends
    • Most Important



    Question 4

    Introduction
    • Definition of topic you will be discussing
    • Setting the scene for what you're discussing

    Argument
    • Point 1
    • Evidence/Example 1
    • Evaluate 1
    • Point 2
    • Evidence/Example 2
    • Evaluate 2
    • Link Back to question

    Counter Argument
    • Point 1
    • Evidence/Example 1
    • Evaluate 1
    • Point 2
    • Evidence/Example 2
    • Evaluate 2
    • Link Back to question

    Concluding Paragraph
    • Answer/Address
    • It Depends
    • Most Important


    That was effort to write on a tablet >. <

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    (Original post by CharlieTT)
    Here's a good plan for each of the questions.

    Question 1

    Definition of topic
    Argument
    • Point
    • Evidence/Example
    • Evaluate

    Counter Argument
    • Point
    • Evidence/Example
    • Evaluate



    Question 2/3

    Introduction
    • Definition of topic
    • Relate the case study to the question

    Argument
    • Point
    • Evidence/Example
    • Evaluate
    • Link back to question

    Counter Argument
    • Point
    • Evidence/Example
    • Evaluate
    • Link back 4o question

    Concluding Paragraph
    • Answer/Address
    • It Depends
    • Most Important



    Question 4

    Introduction
    • Definition of topic you will be discussing
    • Setting the scene for what you're discussing

    Argument
    • Point 1
    • Evidence/Example 1
    • Evaluate 1
    • Point 2
    • Evidence/Example 2
    • Evaluate 2
    • Link Back to question

    Counter Argument
    • Point 1
    • Evidence/Example 1
    • Evaluate 1
    • Point 2
    • Evidence/Example 2
    • Evaluate 2
    • Link Back to question

    Concluding Paragraph
    • Answer/Address
    • It Depends
    • Most Important


    That was effort to write on a tablet >. <

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    You don't need to evaluate on question one though.

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    (Original post by will2348)
    You don't need to evaluate on question one though.

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    It really means expand/explain in this context. Sorry for confusion.

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    Hi everyone can someone help me fill in the gaps please!

    Liquidity Ratios

    Gearing ratio: shows how much the business is financed through long term borrowing/bank loans
    Current Ratio
    Acid Ratio:

    Financial efficiency:

    Inventory(stock) turnover: how much a business sells all of its stocks in a year
    Asset turnover:
    Debtor days: How many days it takes for a business to get back what its owed
    Creditor days: how many days it takes for a business to pay its liabilities (suppliers)

    Shareholders

    Dividend share: how much a shareholder gets back per share
    Dividend yield: the rate of return off the share
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    (Original post by cera ess six)
    Hi everyone can someone help me fill in the gaps please!

    Liquidity Ratios

    Gearing ratio: shows how much the business is financed through long term borrowing/bank loans
    Current Ratio
    Acid Ratio:

    Financial efficiency:

    Inventory(stock) turnover: how much a business sells all of its stocks in a year
    Asset turnover:
    Debtor days: How many days it takes for a business to get back what its owed
    Creditor days: how many days it takes for a business to pay its liabilities (suppliers)

    Shareholders

    Dividend share: how much a shareholder gets back per share
    Dividend yield: the rate of return off the share
    Current ratio is simply the amount of current assets: current liabilities. This is a less harsh measure as by this measures inventories are included. Acid test is exactly the same but under current assets it excludes inventories because this is viewed as the least liquid asset (one that would take the longest to convert into cash). Asset turnover refers to how efficiently a business is using its assets to generate revenue. So for every one pound of assets, it might be generating two pound of revenue. Asset turnover provides no insight into profitability though.

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    (Original post by cera ess six)
    Hi everyone can someone help me fill in the gaps please!

    Liquidity Ratios

    Gearing ratio: shows how much the business is financed through long term borrowing/bank loans
    Current Ratio
    Acid Ratio:

    Financial efficiency:

    Inventory(stock) turnover: how much a business sells all of its stocks in a year
    Asset turnover:
    Debtor days: How many days it takes for a business to get back what its owed
    Creditor days: how many days it takes for a business to pay its liabilities (suppliers)

    Shareholders

    Dividend share: how much a shareholder gets back per share
    Dividend yield: the rate of return off the share
    Asset turnover is the amount of sales a business generates by using its net assets. The higher the figure, the better they are utilising their assets.
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    can anyone explain to me basically what gross profit margins show? like whats the difference if its high or low and why does it matter?
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    (Original post by sofiax0)
    can anyone explain to me basically what gross profit margins show? like whats the difference if its high or low and why does it matter?
    Gross Profit Margins measure what percentage of sales are Gross Profit. High GPM means a large amount of its revenue is converted to gross profit.

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    Anyone got any idea what the 18 markers could be on


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    (Original post by CharlieTT)
    Gross Profit Margins measure what percentage of sales are Gross Profit. High GPM means a large amount of its revenue is converted to gross profit.

    Posted from TSR Mobile
    and a business wants high gpm right? or does it depend on the business? like a cake business may have a low gpm because it sells more than say a computer business?
 
 
 
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