Tuesday 24 October 2017

Fixed Assets Turnover

Fixed Assets Turnover



The ratio measures the extent of the revenue generated in comparison to its investment in fixed assets. It tells us how effectively the company uses its plant and equipment. Fixed assets include the property, plant and equipment. Higher the ratio, it means the company is effectively and efficiently managing its fixed assets. 
Fixed Assets Turnover = Operating Revenues / Total Average Asset

-Thanks to zerodha 

Stocks And Share 
Analyst

No comments:

Post a Comment