5) Operating Performance Ratios
5.1) Fixed-Asset Turnover
5.1.1) is a rough measure of the productivity of a company's fixed assets (property, plant and equipment or PP&E) with respect to generating sales.
5.1.2) For most companies, their investment in fixed assets represents the single largest component of their total assets.
5.1.3) This annual turnover ratio is designed to reflect a company's efficiency in managing these significant assets.
5.1.4) Simply put, the higher the yearly turnover rate, the better.
| Fixed-Asset Turnover = | Revenue |
| Value of Property, Plant and Equipment |
5.2) Sales/Revenue Per Employee
5.2.1) As a gauge of personnel productivity, this indicator simply measures the amount of dollar sales, or revenue, generated per employee.
5.2.2) The higher the dollar figure the better.
5.2.3) Here again, labor-intensive businesses (ex. mass market retailers) will be less productive in this metric than a high-tech, high product-value manufacturer.
| Sales/Revenue Per Employee = | Revenue |
| Number of Employee (average) |
Source: http://www.fncalculator.com/financialcalculator?type=financialRatios#
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