Fixed Asset Turnover Ratio (FATR)
The Fixed Asset Turnover Ratio (FATR) is a financial efficiency ratio that measures how effectively a company uses its fixed assets to generate sales. It is calculated by dividing net sales by the average net fixed assets. A higher ratio indicates that the company is efficiently using its fixed assets to produce revenue. In the context of maintenance, optimizing asset utilization and reliability can positively impact the FATR.
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