Fixed assets turnover ratio measures sales per $ of investment in fixed assets. It is define as :-
Fixed assets turnover ratio is supported to measure the efficiency with which fixed assets are employed. high indicates high degree of efficiency in assets utilization and low ratio reflect in-efficient use of assets. However in interpreting this ratio one caution should be burn in mind, when fixed assets of firm are old and sustaintially depreciated the fixed assets turnover tends to be high because the denominator of ratio is very low.
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