Asset Efficiency Ratio
This ratio measures the amount of Sales generated by each dollar in Assets. The higher the ratio the better, as this indicates the company generates more sales for each dollar of assets. Annual Sales are reported on the Income Statement. Total Assets are reported on the Balance Sheet.
How does your pharmacy compare?
National median Sales to Assets Ratio as reported in the 2013 NCPA Digest is $4.90
This indicates that nationally independents generated $4.90 in sales for each dollar invested in assets. You can improve your performance by increasing Inventory and AR turnover and/or generating more Sales without growing your assets total.
A strong performance would be in the $6.00 range. Improving this ratio will typically improve Cash Flow.