Fixed Asset Turnover Ratio Calculator

What does it do?

The fixed asset turnover ratio measures the amount of sales activity a business is deriving from its investment in fixed assets. This fixed asset turnover ratio calculator works out the value of the ratio based on input values for revenue and opening and closing fixed assets.

The value of the fixed asset turnover ratio will depend on the industry the business operates in. The higher the ratio, the higher the sales activity for a given level of fixed assets, and the higher the earnings are likely to be. Managements job is to ensure that the fixed assets are managed efficiently, and the trend of the ratio is upwards. Further details on this ratio can be found in our fixed asset turnover ratio tutorial.

Formula

The fixed asset turnover calculation is carried out using the fixed asset turnover formula by dividing the revenue by the average fixed assets for the period.

Fixed asset turnover ratio = Revenue / Average fixed assets

Revenue sometimes referred to as sales or turnover, is found on the income statement. Fixed assets are found on the balance sheet of the business. The average of the opening and closing fixed asset levels is used to avoid distorting the result.

fixed asset turnover ratio calculator v 1.0
Fixed Asset Turnover Ratio Calculator Preview

Instructions

The Excel fixed asset turnover ratio calculator, available for download below, is used to compute the fixed asset turnover ratio by entering details relating to the revenue and the opening and closing fixed asset levels. The calculator is used as follows:

Step 1

The revenue is entered. Revenue is found on the income statement of the business. It is sometimes referred to as sales, net sales or turnover.

Step 2

The opening and closing fixed asset levels are entered. The opening and closing fixed asset levels are found on the balance sheets of the business. The figure used for fixed assets should be net of accumulated depreciation.

Step 3

The fixed asset turnover ratio calculator works out the average value of the fixed assets during the accounting period, and the fixed asset turnover ratio.

Fixed Asset Turnover Ratio Calculator Download

The fixed asset turnover ratio calculator spreadsheet is available for download in Excel format by following the link below.

There is no correct value for the fixed asset turnover ratio as it depends on the industry in which the business operates. It is useful to compare the calculated figure with other businesses in your industry using figures available from published financial statements.

The fixed asset turnover ratio calculator is one of many financial calculators used in bookkeeping and accounting, discover another at the links below.

Notes and major health warnings
Users use this fixed asset turnover calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an accounting tool that you might use when considering how to calculate fixed asset turnover. It is purely illustrative. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this fixed assets turnover ratio calculator, please let us know and we will try to fix it.
Fixed Asset Turnover Ratio Calculator November 6th, 2016Team

You May Also Like


Related pages


doubtful debt provisionsmall business bookkeeping templatejournal entry for wagesexcel prove it practice testprepaid expense examplepresent value of future annuity calculatorcalculate operating leveragethe economic entity assumption requires that the activitieshow to estimate salvage valueaccounting mcqs testcash operating cycle formulacalculate receivables turnovermeaning of cash discountcash receipts and cash disbursementshow to calculate dsocheque examplesnet receivables turnoversale ledger control accountoverhead absorption rate formulageneral journal transactions exampleexpenses template small businessbank reconciliation journal entrydeferred tax examplesunearned revenue on balance sheetjournal entry for outstanding expensesmarkup margin formulawhat are controllable expensesutility expenses definitionbookkeeping source documentsaverage days sales in inventoryreturn of capital journal entrylocom accountingbank reconsunearned revenue isbookkeeping sheetsadjusting entry for inventoryaging of accounts receivable formulaeom payretained income on balance sheetrestaurant accounting chart of accountsbank reconciliation statement problems and solutionssales ledger definitionexample of cash voucherdouble entry bookkeeping booksfuture value of annuity formulaaccounts mcq questions with answerspresent value factor of annuitydeferred tax calculationsundry accounts10 steps in the accounting cyclepremium bonds calculatorunearned revenues arefuture value annuityaccount receivable turnover definitionbusiness plan financials template excelprepaid expenses journal entrysundry expenses examplesales returns and allowances closing entryfuture value calcdefine fob destinationjournal entry bad debt expenseaccounting templates for excelgeneral ledger formdebtor ledgerdebt turnover ratio formulacontribution margin income statement formatdaybook in accountsa bank reconciliation should be preparedsoftware amortisationprepaid insurance liabilityprovision for obsolescencemarkup percentage calculationreceivable turnover ratio formulawhat are consumable goodscomparative and common size balance sheet