The fixed-asset turnover ratio measures the amount of sales a business generates for every dollar invested in fixed assets. The ratio equals net sales divided by average net fixed assets. A high fixed ...

Businesses can rely on many measures to determine how financially healthy they are. Calculating their fixed-asset-to-equity-capital ratio is one way. This ratio determines whether a company's fixed ...

The asset turnover ratio compares a company's total average assets to its total sales. The ratio helps investors determine how efficiently a company is using its assets to generate sales. The success ...

If you operate a factory, you rely on machinery to produce salable goods. If you’re a freight company, your fleet of trucks is the key to making money. Every business has fixed assets that are ...

Fixed assets are assets that are staples of your business, like property, equipment, and plants. These assets are tangible and depreciable, and typically last for longer than one year. Understanding ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

Fixed asset impairment occurs when asset market value drops below its book value. To detect impairment, compare asset's book value against its recoverable amount. If impaired, reduce book value on ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

Publicly traded corporations are required to publish quarterly balance sheets that allow shareholders to compare a company’s assets with its liabilities. It’s also a good practice for private ...

Stephanie Trovato is an experienced journalist with a focus on tech and small business. She has written for national web publications like Hubspot, SmallBizClub, and Investopedia. You can find her at ...