The fixed-asset turnover ratio measures the amount of sales a business generates for every dollar invested in fixed assets. The ratio equals net sales divided by average net fixed assets. A high fixed ...

Fixed asset turnover is a key metric that helps investors and businesses understand how effectively a company uses its fixed assets to generate revenue. By analyzing this ratio, decision-makers can ...

The asset turnover ratio compares a company's total average assets to its total sales. The ratio helps investors determine how efficiently a company is using its assets to generate sales. The success ...

Your company's asset turnover ratio helps you understand how productive your small business has been. In short, it reveals how much revenue the company is generating from each dollar's worth of assets ...

An asset utilization ratio that shows how efficiently a company uses fixed assets such as property, plants and equipment. It is calculated by dividing sales by fixed assets, (Sales/PP&E). If the ratio ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Investopedia / Michela Buttignol Annual ...

Asset turnover ratio calculates efficiency of asset use to generate sales; formula: Total Sales ÷ Average Assets. Higher asset turnover indicates better capital use and operational efficiency relative ...