Question

Computing and Comparing PPE Turnover for Two Companies Texas Instruments Inc. and Intel Corporation report the following information Intel Corporation Texas Instruments $ millions Sales PPE, net Sales PPE, net 2018 $70,848 $48,976 $15,784 $3,183 62,761 41,109 14,961 2,664 2017 Compute the 2018 PPE turnover for both companies. Round answers to one decimal place. PPE turnover rate Intel Corporation Texas Instruments Check Previous a Save Answers

Answer 1

PPE Turnover ratio tells you how many dollars of sales your company gets for each dollar invested in property, plant, and equipment (PPE). It’s a measure of how efficient you are at generating revenue from fixed assets such as buildings, vehicles, and machinery. The higher our PPE Turnover, the more efficient we are with our capital investments.

Formula for PPE turnover ratio is by dividing turnover by PPE

Revenue PPE Turnover ratio PPE

2018 PPE Turnover ratio for both companies is as below.

Intel Texas Year corporation Instruments 2018 1.4 5.0

PPE turnover ratio for Texas corporation is higher compared to Intel corporation, Which means that Texas Corporation is highly utilising its assets to generte revenue.

Texas is performing well compared to Intel Corporation.