Which financial indicator measures the ratio of sales to fixed assets?
A) days of inventory
B) asset turnover
C) average collection period
D) fixed asset turnover
E) inventory turnover

Question

Quizplus · Accepted Answer

Fixed asset turnover measures how efficiently a company uses its fixed assets to generate revenue. It is calculated by dividing total revenue by average fixed assets.

Which Financial Indicator Measures the Ratio of Sales to Fixed