Visa Asset Turnover vs Current Assets Analysis

Asset Turnover vs Current Assets

Asset Turnover

Asset turnover is a measure of a firms operating efficiency, calculated by dividing Revenues by Average Assets. Often a component of DuPont return on equity analysis.

Current Assets

Current assets of Visa Inc include cash, cash equivalents, short-term investments, accounts receivable, stock inventory and the portion of prepaid liabilities which will be paid within a year. Depending on the nature of the business, current assets can range from barrels of crude oil, to baked goods, to foreign currency. Current assets are important because they are the assets that are used to fund day-to-day operations of Visa. The current portion of Total Assets, reported if a company operates a classified balance sheet that segments current and non-current assets.

Accounts Relationship

Asset Turnover vs Current Assets

Significance: Pay attention

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Visa Inc Asset Turnover account and Current Assets

Correlation Coefficient

-0.76
Relationship DirectionNegative 
Relationship StrengthWeak