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 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 ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

An asset utilization ratio that shows how efficiently a company uses fixed assets such as property, plants and equipment. It is calculated by dividing sales by fixed assets, (Sales/PP&E). If the ratio ...

A balance sheet is one of two standardized financial reports produced on a regular basis. It provides information used by professionals in the financial community to analyze company performance and ...

Union Pacific’s huge fixed-asset base may have its drawbacks, but the company is doing well to squeeze higher revenue from those assets. The company owes much of its success to a business model in ...

A fundamental flaw in U.S. GAAP and IFRS financial reporting standards distorts the calculation of working capital and the current ratio, resulting in a significant understatement in most companies’ ...

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 ...