fixed-asset turnover

fixed-asset turnover definition - business

fixed asset turnover

A financial ratio that indicates a firm's ability to generate sales based on its long-term assets. Fixed asset turnover is calculated by dividing annual sales by the dollar amount of fixed assets. A high fixed asset turnover indicates management's effective use of the firm's fixed assets.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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