fixed asset turnover


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Fixed Asset Turnover Ratio

A measure of how efficiently a business generates sales from its investments. That is, it is the ratio of the amount a company earns in sales to the average value of its fixed assets. Fixed assets are investments that cannot easily be converted into cash, e.g. a factory or computer system, and can be quite expensive. Thus, if a company has a high ratio, this means that its sales have kept pace with or exceeded the amount it has invested in fixed assets, which is a positive sign for the company.

fixed asset turnover

A financial ratio that indicates a firm's ability to generate sales based on its long-term assets. Fixed asset turnover is calculated by dividing annual sales by the dollar amount of fixed assets. A high fixed asset turnover indicates management's effective use of the firm's fixed assets.
References in periodicals archive ?
3 Receivables turnover ratio index X 2 Inventory turnover ratio Current asset turnover ratio Fixed asset turnover ratio Total asset turnover ratio Profitability 0.
Activity Ratios The activity ratios have improved for the market with the total asset turnover and fixed asset turnover remaining stable for most of the study period for the Alternative carriers market.
In a sample of 200 small, privately-held manufacturing firms, the study examined whether significant differences exist between firms providing only standard products ("efficiency firms"), those providing only made-to-order products ("flexibility firms"), and those providing both standard and made-to-order products ("mix firms") in terms of working capital turnover, fixed asset turnover, cost structure, and margins.
Fixed asset turnover focuses specifically on how well the cooperative business uses its fixed assets to generate sales.
For fixed asset turnover ratios (sales over fixed assets), subsidiary firms had higher ratios than did parent firms, indicating that the fixed assets of subsidiary companies were more productive than those of parent firms.
9 (days) Fixed Asset Turnover Total Asset Turnover Times Interest Earned (TIE) 1.
8 Leading global electrical and electronics retailers by fixed asset turnover, 2006-20103.
Other commodity groups which do less processing--such as poultry/livestock cooperatives--have higher fixed asset turnover ratios.
Table 32: Leading Global Electrical and Electronics Retailers by Fixed Asset Turnover, 2006-2010
8 Leading global clothing, footwear, accessories and luxury goods retailers by fixed asset turnover, 2006-2010
8 Leading global department stores by fixed asset turnover, 2006-2010