The fixed asset turnover ratio is measured as:
A) Sales minus net fixed assets.
B) Sales times net fixed assets.
C) Sales divided by net fixed assets.
D) Net fixed assets divided by sales.
E) Net fixed assets plus sales.

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio is calculated by dividing sales by net fixed assets, which measures how efficiently a company uses its fixed assets to generate sales.

The Fixed Asset Turnover Ratio Is Measured As