Which ratio assesses how efficiently a firm uses its fixed assets?
A) capital intensity ratio
B) current ratio
C) average collection period
D) fixed asset turnover

Question

Quizplus · Accepted Answer

The fixed asset turnover ratio measures how efficiently a company uses its fixed assets to generate sales, indicating how well the company is using its investment in fixed assets to produce revenue.

Which Ratio Assesses How Efficiently a Firm Uses Its Fixed