Fixed asset turnover is a financial metric that measures the efficiency of a company's fixed assets. Fixed assets are assets that are not easily converted into cash and are used in the production of a company's goods or services.
Fixed assets include things like factories, machinery, equipment, and vehicles.
Fixed asset turnover is calculated by dividing the company's net sales by the total value of its fixed assets.
Fixed asset turnover is a good metric to use when comparing companies in the same industry.