Fixed Assets Turnover Ratio Fixed Assets Turnover Ratio: Definition: Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under-utilization of fixed assets. The ratio is calculated by using following formula: Formula of Fixed Assets Turnover Ratio : Fixed assets turnover ratio turnover ratio is calculated by the following formula: Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets You may also be interested in other articles from “financial statement analysis” chapter: Horizontal and Vertical Analysis Ratios Analysis Horizontal Analysis or Trend Analysis Trend Percentage Vertical Analysis Accounting Ratios Definition, Advantages, Classification and Limitations: Gross profit ratio Net profit ratio Operating ratio Expense ratio Return on shareholders investment or net worth Return on equity capital Return on capital employed (ROCE) Ratio Dividend yield ratio Dividend payout ratio Earnings Per Share (EPS) Ratio Price earning ratio Current ratio Liquid/Acid test/Quick ratio Inventory/Stock turnover ratio Debtors/Receivables turnover ratio Average collection period Creditors/Payable turnover ratio Working capital turnover ratio Fixed assets turnover ratio Over and under trading Debt-to-equity ratio Proprietary or Equity ratio Ratio of fixed assets to shareholders funds Ratio of current assets to shareholders funds Interest coverage ratio Capital gearing ratio Over and under capitalization Financial-Accounting- Ratios Formulas Limitations of Financial Statement Analysis Other Related Accounting Articles: Current Assets to Proprietor’s Fund Ratio Dividend Yield Ratio Return on Equity Capital (ROEC) Ratio Fixed Assets to Proprietor’s Fund Ratio Dividend Payout Ratio Over trading and Under Trading Proprietary Ratio or Equity Ratio Debt Service Ratio or Interest Coverage Ratio Expense Ratio Working Capital Turnover Ratio Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download Tweet Pin It Sana Ahmed Financial Statement Analysis No Comments Home » Financial Statement Analysis » Fixed Assets Turnover Ratio About The Author Sana Leave a Reply Cancel reply Your email address will not be published. Required fields are marked *Comment Save my name, email, and website in this browser for the next time I comment.