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Definition – What is Fixed Asset Turnover?
Fixed Asset Turnover is the ratio of sales to fixed assets.
Formula – How to calculate Fixed Asset Turnover
Fixed Asset Turnover = Net Sales / Net Fixed Assets
Example
A company has net sales of $17,000 and net fixed assets of $7,000.
Fixed Asset Turnover = $17,000 / $7,000 = 2.43
Therefore, this company’s fixed asset turnover is 2.43.
Sources and more resources
- Wikipedia – Fixed Asset Turnover – A summary of Fixed Asset Turnover.
- Accounting Tools – Fixed asset turnover ratio – An explanation of what the fixed asset turnover ratio is and how it is calculated.
- The Balance SMB – Fixed Asset Turnover Ratio – Another explanation of fixed asset turnover.
- Investopedia – Fixed-Asset Turnover Ratio – A breakdown of fixed asset turnover ratio and how it is used.