Fixed Asset Turnover Ratio Calculator







Formula

The formulas used in the calculations are:

\[ \text{Average Fixed Assets} = \frac{\text{Starting Fixed Assets} + \text{Ending Fixed Assets}}{2} \]

\[ \text{Fixed Asset Turnover Ratio} = \frac{\text{Revenue}}{\text{Average Fixed Assets}} \]

Description

This calculator computes the Fixed Asset Turnover Ratio based on the input values of starting fixed assets, ending fixed assets, and revenue. The fixed asset turnover ratio measures how efficiently a company uses its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.

Example Calculation

Let's assume the following:

Calculate the average fixed assets:

\[ \text{Average Fixed Assets} = \frac{15,000,000 + 18,000,000}{2} = 16,500,000 \]

Calculate the fixed asset turnover ratio:

\[ \text{Fixed Asset Turnover Ratio} = \frac{7,500,000}{16,500,000} = 0.45x \]

Therefore, the fixed asset turnover ratio is 0.45x.