Fixed asset turnover ratio

Fixed asset turnover ratio,

Definition of Fixed asset turnover ratio:

  1. 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.

Meaning of Fixed asset turnover ratio & Fixed asset turnover ratio Definition