Which ratio is used to evaluate how a company is managing its property,plant and equipment?
A)Accounts receivable turnover.
B)Inventory turnover.
C)Fixed asset turnover.
D)Asset turnover.

Question

Quizplus · Accepted Answer

Fixed asset turnover is the ratio used to evaluate how well a company is managing its property, plant, and equipment. This ratio indicates how efficiently a company is generating sales from its investments in fixed assets. It is calculated by dividing net sales by average fixed assets.

Which Ratio Is Used to Evaluate How a Company Is