Fixed-Asset Turnover Ratio

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Dictionary Says

Definition of 'Fixed-Asset Turnover Ratio'

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues.

The fixed-asset turnover ratio is calculated as:

Fixed-Asset Turnover Ratio
Investopedia Says

Investopedia explains 'Fixed-Asset Turnover Ratio'

This ratio is often used as a measure in manufacturing industries, where major purchases are made for PP&E to help increase output. When companies make these large purchases, prudent investors watch this ratio in following years to see how effective the investment in the fixed assets was.
Search results for

'Fixed-Asset Turnover Ratio'

  • Operating Performance Ratios: Fixed-Asset Turnover | Investopedia

    http://www.investopedia.com/university/ratios/operating-performance/ratio1.asp
    ... As is the case with Zimmer Holdings, a high fixed-asset turnover ratio is more the
    product of a relatively low investment in PP&E, rather than a high level of ...
  • How To Evaluate A Company's Balance Sheet

    http://www.investopedia.com/articles/basics/06/assetperformance.asp
    ... we'll look at four evaluative perspectives on a company's asset performance: (1)
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  • Operating Performance Ratios: Introduction | Investopedia

    http://www.investopedia.com/university/ratios/operating-performance/
    ... In this section, we'll look at the fixed-asset turnover ratio and the sales/revenue
    per employee ratio, which look at how well the company uses its fixed ...
  • Operating Performance Ratios: Introduction | Investopedia

    http://www.investopedia.com/university/ratios/operating-performance/default.asp
    ... In this section, we'll look at the fixed-asset turnover ratio and the sales/revenue
    per employee ratio, which look at how well the company uses its fixed ...
  • Financial Ratio Tutorial | Investopedia

    http://www.investopedia.com/university/ratios/
    ... Read More »; Cash Flow To Debt Ratio. Read More ». 4) Operating Performance Ratios.
    Fixed-Asset Turnover. Read More »; Sales/Revenue Per Employee. Read More »; ...
  • Fundamental Analysis Tutorials | Investopedia

    http://www.investopedia.com/university/all/fundamental-analysis/
    ... Operating Performance Ratios. Learn about the fixed-asset turnover, sales/revenue
    per employee, operating cycle and dividend payout ratio. Read More »; ...
  • Fundamental Analysis Tutorials | Investopedia

    http://www.investopedia.com/university/all/fundamental-analysis
    ... Operating Performance Ratios. Learn about the fixed-asset turnover, sales/revenue
    per employee, operating cycle and dividend payout ratio. Read More »; ...
  • Operating Performance Ratios: Operating Cycle | Investopedia

    http://www.investopedia.com/university/ratios/operating-performance/ratio3.asp
    ... to the Financial Ratio Tutorial main menu. Table of Contents. Operating Performance
    Ratios: Introduction; Operating Performance Ratios: Fixed-Asset Turnover; ...
  • CFA Level 1 Study Guide - Financial Ratios - Operating Efficiency ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/operating-efficiency-ratios.asp
    ... Expensing; 8.18 Capitalizing Intangible Assets; 8.19 Depreciation; 8.20 Fixed Asset
    Disclosures; ... The Industry Life Cycle; 13.10 The Concentration Ratio and the ...
  • Markets Tutorials | Investopedia

    http://www.investopedia.com/university/all/markets/
    ... Operating Performance Ratios. Learn about the fixed-asset turnover, sales/revenue
    per employee, operating cycle and dividend payout ratio. Read More »; ...

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