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What is Fixed Asset Turnover
Fixed Asset Turnover is a term that indicates the efficiency of utilization of fixed assets and indicates how many times they turn in revenues per year.

Fixed Asset Turnover is a term that indicates the efficiency of utilization of fixed assets and indicates how many times they turn in revenues per year.

The turnover should at least at the level of 1.

Calculation:

Fixed Asset Turnover = Sales / Fixed Assets

Use of the Fixed Asset Turnover in practice: In the enterprise it used by CFO in financial analysis to analyze ratios. When comparing according to this indicator between enterprises, it must take into account the degree of amortization of assets and depreciation method.

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Last update: 14.09.2015

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