Asset Turnover vs Current Assets
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 of Facebook 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 Facebook. The current portion of Total Assets
, reported if a company operates a classified balance sheet that segments current and non-current assets.