Definition of Fixed asset turnover

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TeachMeFinance.com - explain Fixed asset turnover



Fixed asset turnover

The term 'Fixed asset turnover' as it applies to the area of energy can be defined as ' A ratio of revenue to fixed assets which is a measure of the productivity and efficiency of property, plant, and equipment in generating revenue. A high turnover reflects positively on the entity's ability to utilize properly its fixed assets in business operations'.

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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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