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The Fixed Asset Turns is a ratio that measures a company's ability to generate net sales from the investments made in [[Link::t:PP&E|Property, Plant and Equipment (PP&E)]], net of depreciation.
===Calculation===
{{math|{{this}}|{{frac|Revenue|Net Fixed Asset Value|}}}}
where:
* Revenue = Total annual supply chain revenue
* Net Fixed Asset Value = Average value of Net Fixed Assets (Gross Fixed Asset - Accumulated depreciation) during the year (= average of beginning and year-end net fixed assets value)
Unit of measure: Number of turns
===Importance===
A larger number of turns indicates that the company is making more effective use of its existing assets. A lower ratio is an indicator either of low sales or that the business has over-invested in property or equipment that isn't benefiting the bottom line.

In order to understand what constitutes good or bad {{this}} this metric should always be compared to industry standards and the ratios of other companies that are similar in size. An equipment-heavy company, such as an industrial equipment manufacturer, has an inherently higher fixed asset total.
===Notes===
Alternative names for this metric include Return on Fixed Assets, Fixed Asset Turnover Ratio.
[[Category:Metric]][[Category:Supply Chain]]
{{Object
|name=Fixed Asset Turns
|parent=m:AE
|sort=52000
|level=1
|keywords=Fixed Asset, Turns, Depreciation
|description=The ratio of a company's ability to generate net sales from the investments made in Property, Plant and Equipment (PP&E), net of depreciation.
}}

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