Fixed Asset Turnover Ratio

This ratio asks how hard the plant and equipment are working. It is the right turnover measure for a mill, a hotel chain, or a logistics fleet.

A high ratio means the company sweats its assets. It can also mean the assets are old and almost fully depreciated, so the denominator is small.

Compare net-block turnover with the age of the assets. High turnover on a fully depreciated plant will fall after the plant is replaced at today's cost.

Capital work-in-progress is not yet producing sales. Including it lowers the ratio during a build-out. Excluding it hides the capital that is about to need a return.