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Sales to Average Fixed Assets Calculator

Compare revenue with average fixed assets over a period.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Starting fixed assets of 80,000 and ending fixed assets of 120,000 average to 100,000. Revenue of 500,000 gives turnover of 5 times.

Average fixed assets = (opening + closing) ÷ 2; turnover = revenue ÷ average fixed assets

Worked example

Enter these known values and leave the other values blank.

Starting fixed assets
80000 USD
Final fixed assets
120000 USD
Revenue
500000 USD
Average fixed assets
100000 USD
Fixed asset turnover (FAT)
5 x

Assumptions and limitations

  • It can be distorted by large purchases, disposals or seasonal changes. Use consistent net fixed-asset values and a more detailed average if the opening and closing balances do not represent the period.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Is a two-point average always representative?

It can be distorted by large purchases, disposals or seasonal changes. Use consistent net fixed-asset values and a more detailed average if the opening and closing balances do not represent the period.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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