This essay focuses on Components of Return on Assets. The first of these components is the return on sales ratio and is as follows:
What caused Henderson’s return on assets to decrease so dramatically from the previous year? The answer can be found by considering the two components that make up the return on assets ratio. The first of these components is the return on sales ratio and is as follows:
Current assets are assets that can be easily converted into cash and cash equivalents (typically within a year). Current assets are also termed liquid assets and examples of such are:
Non-current assets are assets that cannot be easily and readily converted into cash and cash equivalents. Non-current assets are also term fix assets, long-term assets, or hard assets. Examples of non-current or fixed assets include:
There are three key properties of an asset;
Assets are generally classified in three ways: