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

Question

Quizplus · Accepted Answer

Fixed asset turnover ratio is used to evaluate how well a company is managing its property, plant, and equipment. It measures how efficiently a company is generating sales from its investment in fixed assets. The formula for fixed asset turnover ratio is net sales divided by average fixed assets.

Which Ratio Is Used to Evaluate How Well a Company