fixed assets / current assets
fixed assets
The current assets to fixed assets ratio measures how many current assets are bought or utilized through fixed assets. There's no specific agreed ratio on this.it measures the proportion between the current assets and fixed assets the company acquires.
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
current assets areflexible in nature ' easy encash fixed assets are fixed in nature ;non-moving assets are not easy to encash regulary [by:naruto akiem]
fixed assets / current assets
fixed assets
The current assets to fixed assets ratio measures how many current assets are bought or utilized through fixed assets. There's no specific agreed ratio on this.it measures the proportion between the current assets and fixed assets the company acquires.
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
current assets areflexible in nature ' easy encash fixed assets are fixed in nature ;non-moving assets are not easy to encash regulary [by:naruto akiem]
Total assets less net fixed assets equals
Fixed deposits placed with banks are considered as current assets. Current assets are always assets that can be liquidated within 1 year. Fixed deposits can be withdrawn at any time, eventhough their placement periods can be longer than a year.
fixed deposit is an assets
Capital Employed = Fixed assets + current assets - current Liabilities
fixed assets are those assets used for more than one fiscal year while current assets only used for one fiscal year.
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
if loans given for short term period then current assets but if given for long term then non-current assets.