What is the fixed asset turnover ratio?
The fixed asset turnover ratio shows the relationship between the annual net sales and the net amount of fixed assets.
The net amount of fixed assets is the amount of property, plant and equipment reported on the balance sheet after deducting the accumulated depreciation. Ideally, you should use the average amount of net fixed assets during the year of the net sales.
A corporation having property, plant and equipment with an average gross amount of $10 million and an average accumulated depreciation of $4 million would have average net fixed assets of $6 million. If its net sales were $18 million, its fixed asset turnover would be 3 ($18 million of net sales divided by $6 million of average net fixed assets).
Learn more about Financial Ratios.
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Iam a student who have known idea about accounting
pls explain the asset & fixedasset
what is accounting
somebody plz help me!!!!!
what is an accruel
is it got somthin to do with cruelty
The correct spelling is accrual. It is a concept
used in accounting terminology to show the amount of money accrued for in the previous accounting year.
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