fixed asset turnover ratio definition

fixed asset turnover ratio

Measure of the productivity of a firm, it indicates the amount of sales generated by each dollar spent on fixed assets, and the amount of fixed assets required to generate a specific level of revenue. Changes in the this ratio over time reflect whether or not the firm is becoming more efficient in the use of its fixed assets. Formula: Sales revenue ÷ average fixed assets.

fixed asset turnover ratio is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

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