What is fixed assets/ capital employed ratio? What does it indicate?
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Answer Posted / Madhup Kumar
"The Fixed Assets/Capital Employed Ratio, also known as the Fixed Asset Turnover Ratio, measures how effectively a company uses its non-current (fixed) assets to generate sales. It is calculated by dividing total sales by net fixed assets. A high ratio indicates efficient use of fixed assets and strong asset management, while a low ratio may suggest inefficiency or underutilization of fixed assets."n
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