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 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 ...

Mutual funds hold trillions of dollars in investment assets, and investors commonly look to mutual funds in order to get diversified portfolio exposure at low cost. One primary factor in determining ...

Businesses are always eager to know if they are profitable. To stay on top of profitability, they will assess ways to improve efficiency, reduce costs, incentivize employees and optimize operations to ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

One way to measure the success of a company is to look at how efficiently it uses its assets to generate revenue. Asset turnover provides insight into the efficiency question and is defined as the ...

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 ...