Is there a difference between Total Asset Turnover and Fixed Asset Turnover?

CFA Level I
#1

I know this may be a silly question, but I’m a little confused. I know that total asset t/o = sales / average total assets. But, fixed asset turnover = average net fixed assets…is there a difference? are the two terms interchangeable on the exam?

#2

I only know one asset turnover ratio. and that is, Net Income / Total Assets. Anything else, means confusion for my small mind.

#3

FIxed assets turnover= Net sales/Average fixed assets Total assets turnover= Net Sales/Average TOTAL assets

#4

Strangedays, thank you. Question: If total asset turnover increased from 3 to 6, does that mean fixed asset turnover also increased?

#5

yancey Wrote: ------------------------------------------------------- > Strangedays, thank you. > > Question: > > If total asset turnover increased from 3 to 6, > does that mean fixed asset turnover also > increased? It can be, depends as: Total fixed assets= tangible assets+ intangible assets +financial assets Total Assets= Total fixed assets (tangible+intangible+financial) + Current assets I hope this helps

#6

thanks again

#7

"I only know one asset turnover ratio. and that is, Net Income / Total Assets. " that is NOT the only one and this is technically ROA. tip: ROA can be broken down into FOUR components and ROE 5

#8

Fixed assets are part of total assets. They are not the same as total assets. So, yes, you could have t/o ratios for each, and they are not necessarily correlated.