You can use this formula to calculate the fixed asset turnover ratio of a company: Net sales ÷ average fixed assets = FAT Net sales: Total sales revenue after subtracting any returns. Average ...
use the following formula: Asset turnover ratio = net sales divided by average total assets. An asset turnover ratio could be high or low. Depending on the industry, a high or low ratio may mean ...
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 ...
Many ratios help analysts measure how efficiently a firm is paying its bills, collecting cash from customers, and turning inventory into sales. Two of the most important are accounts receivable and ...