Whats The Fixed Asset Coverage Ratio?
The Fixed average coverage ratio is an indicator of how efficiently the resources and facilities of a firm (the fixed assets) are being utilized by equating them with the amount generated through sales. For a greater value the ratio indicates a satisfactory performance of the organization’s operations and a lower value of the ratio indicates poor performance. This ratio expresses the number to times the fixed assets are being turned over in a stated period and it accounts critically the efficiency with which the assets are being employed.
