Fixed Asset (Property and Equipment) Turnover Ratio

The Fixed Asset Turnover Ratios calculator compute the ratio (percent) of Asset Turnover based on the Total Revenue (TR) and the Net Property and Equipment (NPE) value.

INSTRUCTIONS: Choose the preferred currency units and enter the following:

• (TR)   This is the Total Revenue
• (NPE)   This is the Net Property and Equipment value

Fixed Asset Turnover:  The calculator returns the turnover ratio in percentage.

Fixed-asset turnover is the ratio as a percent of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet). It indicates how well the business is using its fixed assets to generate sales.

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.