Fixed Asset Turnover Ratio Formula

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Fixed Asset Turnover Ratio formula measures the company’s ability to generate sales using fixed assets investments. Check FAQs
FAT=NSANFA
FAT - Fixed Asset Turnover Ratio?NS - Net Sales?ANFA - Average Net Fixed Assets?

Fixed Asset Turnover Ratio Example

With values
With units
Only example

Here is how the Fixed Asset Turnover Ratio equation looks like with Values.

Here is how the Fixed Asset Turnover Ratio equation looks like with Units.

Here is how the Fixed Asset Turnover Ratio equation looks like.

3.8298Edit=90000Edit23500Edit
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Fixed Asset Turnover Ratio Solution

Follow our step by step solution on how to calculate Fixed Asset Turnover Ratio?

FIRST Step Consider the formula
FAT=NSANFA
Next Step Substitute values of Variables
FAT=9000023500
Next Step Prepare to Evaluate
FAT=9000023500
Next Step Evaluate
FAT=3.82978723404255
LAST Step Rounding Answer
FAT=3.8298

Fixed Asset Turnover Ratio Formula Elements

Variables
Fixed Asset Turnover Ratio
Fixed Asset Turnover Ratio formula measures the company’s ability to generate sales using fixed assets investments.
Symbol: FAT
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Net Sales
Net Sales are the number of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and any discounts allowed.
Symbol: NS
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Average Net Fixed Assets
Average Net Fixed Assets are the average of total fixed assets owned by a firm or a company.
Symbol: ANFA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Operating and Turnover Ratios category

​Go Free Cash Flow
FCF=CFO-CAPEX
​Go Free Cash Flow to Firm
FCFF=CFO+(Int(1-tax))-CAPEX
​Go Debt to Assets Ratio
DA=TLTA
​Go Debt to Equity Ratio
RD/E=TLTSE100

How to Evaluate Fixed Asset Turnover Ratio?

Fixed Asset Turnover Ratio evaluator uses Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets to evaluate the Fixed Asset Turnover Ratio, The Fixed Asset Turnover Ratio formula is defined as a ratio which measures a company’s efficiency and evaluates it as a return on its investment in fixed assets such as property, plants, and equipment. Fixed Asset Turnover Ratio is denoted by FAT symbol.

How to evaluate Fixed Asset Turnover Ratio using this online evaluator? To use this online evaluator for Fixed Asset Turnover Ratio, enter Net Sales (NS) & Average Net Fixed Assets (ANFA) and hit the calculate button.

FAQs on Fixed Asset Turnover Ratio

What is the formula to find Fixed Asset Turnover Ratio?
The formula of Fixed Asset Turnover Ratio is expressed as Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets. Here is an example- 3.829787 = 90000/23500.
How to calculate Fixed Asset Turnover Ratio?
With Net Sales (NS) & Average Net Fixed Assets (ANFA) we can find Fixed Asset Turnover Ratio using the formula - Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets.
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