Which of the following measures the number of dollars of sales produced per dollar of fixed assets? Multiple Choice fixed asset to working capital ratio fixed asset turnover ratio fixed asset management ratio sales to working capital ratio
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Which of the following measures the number of dollars of sales produced per dollar of fixed assets?
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fixed asset to working capital ratio
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fixed asset turnover ratio
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fixed asset management ratio
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sales to working capital ratio
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