A good fixed asset turnover ratio depends on the industry, but a ratio of 3:1 or higher is typically considered strong. It shows that a company can earn at least $3 in sales for every $1 spent on ...

Key Takeaways Asset turnover is the ratio of total sales or revenue to average assets. This metric helps investors understand how effectively a company uses assets to generate sales.

The fixed-asset turnover ratio is a measure of whether the money a company spends on the equipment and buildings the company owns, often referred to as property, plant and equipment, or PP&E ...

Your fixed assets should be evaluated in terms of their ability to produce income. Divide your sales by the value of your fixed assets to get your asset-turnover ratio.