Click Ratio Name For More Information

• Current Ratio
• EBIT / Interest
• Sales / Receivables
• Sales / Net Fixed Assets
• Cost of Sales / Inventory
• Quick Ratio
• Debt / Worth
• Sales / Working Capital
• Cost of Sales / Payables
• Depreciation / Net Sales
• Officers & Owners Salaries / Net Sales
• Fixed Assets / Tangible Net Worth
• % Profit Before Taxes / Tangible Net Worth
• % Profit Before Taxes / Total Assets
• Net Profit + Depreciation / Current Portion Long Term Debt

Sales / Net Fixed Assets

Net fixed assets are your total fixed assets less the accumulated depreciation.

What it measures

This ratio measures the use of your fixed assets toward generating sales.  If too low, you may have too much money tied up in fixed assets which are not being productive.

How is the ratio calculated

Divide sales by the net fixed assets.  For example, if your sales for the year are 3,500,000 and the net fixed assets are  75,000 then the ratio is calculated

    3,500,000
    -----------    =  46.67
       75,000

Target

The target for the sales / net fixed assets ratio is 40.15

How to improve your sales / net fixed assets ratio

You can sell any assets not being used in production or increase sales.