CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

What does the fixed asset turnover ratio measure?
A. How well total assets are utilized during a year
B. The amount of EBIT a firm generates per dollar of fixed assets
C. The amount of sales each dollar of fixed assets generates

User Contributed Comments 4

User Comment
michy Net Fixed Asset Turnover ratio is a measure of the firm's utilization of fixed assets.
steved333 sales/assets=asset turnover. sales/ fixed assets reads the same as sales per fixed asset...
timkalt I agree with michy and agree with answers A and C as correct. Fixed asset TO ratio is an activity ratio dividing revenue by average fixed assets which then indicates the utilisation and the amount of sales generated by fixed assets.
ange but the answer A says total asset, not fixed asset. They are different!
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