Jun 10, 2018 0 Comments

Fixed Asset Turnover Calculator is a tool to find out a company's ability to generate net sales from fixed-asset investments

- Fixed Asset Turnover:
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Background Information

- What does Fixed Asset Turnover mean?
- The fixed asset turnover ratio is an efficiency ratio that measures a company’s return on their investment in property, plant, and equipment by comparing net sales with fixed assets

- Formula
- Fixed Asset Turnover = Net Sales / Fixed Assets - accumulated depreciation

- Example
A company has fixed assets worth of $100,000. The accumulated depreciation is $30,000. The sales of the company in the current year are $280,000.

According to the formula, Fixed asset turnover ratio is:-

- = $280,000 / ($100,000 - $30,000)
- = 4

- Jun 10, 2018
- Tool Launched

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