In the same way that baseball-obsessed wonks have dozens of stats to see if a player is any good (OPS, OPS+, WAR, etc.), managers and investment mavens compute all sorts of figures to see how well a company makes money. The fixed-asset turnover ratio represents one of these.
It's calculated as a ratio of sales compared to the value of a company's fixed assets. Fixed assets comprise a firm's really durable holdings...its real estate, its factories and headquarters, etc.
The goal of the fixed-asset turnover ratio is to see how well the company leverages these assets into sales. The figure helps track whether the company gets enough out of its big-ticket holdings. If not, maybe the owners should sell the company to someone that does...and then take up a hobby or something.
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finance a la shmoop. what does per-capita mean? well there's poor capita yeah this
guy, how would you like to be named capita and then there's per capita which [man sits under a tree]
just means well technically per head. yep comes from Latin like oh so many
things salsa dressing and dancing among others, the word decapitation comes to [dancing feet]
mind. like what happens when those flying human taxi drones get too far to the
left or when King Henry got tired of a wife. so if that happened often it had [helicopter prop]
throw off the per capita calculations. and same deal if we suddenly had a lot
of two-headed people being born like the aliens in men in black and whole bunch
other Hollywood movies. per capita is a useful metric in a bunch of financial
calculations. a common set is GDP or gross domestic product per capita .like
if you have a ton of GDP say ten trillion dollars from your country [100 dollar bill]
whateverstan, if you only have a million people that's a ton of production
productivity. but if you're say China with well over a billion people well
then it's a much lower GDP per capita. the calculations get quoted when talking
about things like cell phone monthly subscriptions, computer ownership or [people crowd around a cell phone]
particularly rollicking house parties. so yeah the notion of per capita is pretty
important but don't stress if you're not an expert yet. it's a nothing to lose
your head over. [man carries head]
Up Next
Inventory turnover...way less delicious than an apple turnover. So...what is it?