Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Ratios (Summary)
Procter & Gamble Co., long-term (investment) activity ratios
Source: Based on data from Procter & Gamble Co. Annual Reports
| Ratio |
Description |
The company |
| Net fixed asset turnover |
An activity ratio calculated as total revenue divided by net fixed assets. |
Procter & Gamble Co.'s net fixed asset turnover improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
|
| Total asset turnover |
An activity ratio calculated as total revenue divided by total assets. |
Procter & Gamble Co.'s total asset turnover improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.
|
| Equity turnover |
An activity ratio calculated as total revenue divided by shareholders' equity. |
Procter & Gamble Co.'s equity turnover improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
|
Net Fixed Asset Turnover
Source: Based on data from Procter & Gamble Co. Annual Reports
2011 Calculations
1 Net fixed asset turnover = Net sales ÷ Net property, plant and equipment
= 82,559 ÷ 21,293 = 3.88
| Ratio |
Description |
The company |
| Net fixed asset turnover |
An activity ratio calculated as total revenue divided by net fixed assets. |
Procter & Gamble Co.'s net fixed asset turnover improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
|
Total Asset Turnover
Source: Based on data from Procter & Gamble Co. Annual Reports
2011 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= 82,559 ÷ 138,354 = 0.60
| Ratio |
Description |
The company |
| Total asset turnover |
An activity ratio calculated as total revenue divided by total assets. |
Procter & Gamble Co.'s total asset turnover improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.
|
Equity Turnover
Source: Based on data from Procter & Gamble Co. Annual Reports
2011 Calculations
1 Equity turnover = Net sales ÷ Stockholders' equity attributable to parent
= 82,559 ÷ 67,640 = 1.22
| Ratio |
Description |
The company |
| Equity turnover |
An activity ratio calculated as total revenue divided by shareholders' equity. |
Procter & Gamble Co.'s equity turnover improved from 2009 to 2010 but then deteriorated significantly from 2010 to 2011.
|