This measures the number of dollars of sales produced per dollar of fixed assets.
A) fixed asset to working capital ratio
B) fixed asset turnover ratio
C) fixed asset management ratio
D) sales to working capital ratio

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio measures the efficiency of a company's use of its fixed assets to generate sales. It is calculated by dividing net sales by average fixed assets. This ratio indicates how much revenue is generated per dollar invested in fixed assets, thus measuring asset management efficiency.

This Measures the Number of Dollars of Sales Produced Per