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What Is the Fixed Asset Turnover Ratio

The fixed asset turnover ratio is the ratio of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet). Read here full blog here- https://financeninsurance.com/fixed-asset-turnover-ratio/

The fixed asset turnover ratio is the ratio of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet). Read here full blog here- https://financeninsurance.com/fixed-asset-turnover-ratio/

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Finance N Insurance

What Is the Fixed Asset Turnover Ratio

The fixed asset turnover ratio is basically a measuring tool used by the companies to

analyze or judge that how well the company’s assets are functioning to produce or bring

in the revenue or sales for the company. Moreover, the Investors and creditors also use

the Fixed Asset Turnover Ratio to know the sales of the company. Investors measure the

return on their investments which are invested in the company, whereas the creditors

make sure that the company is in a position to pay off its debts.

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