Fixed Assets Flashcards
1
Q
What do Fixed Asset Ratios measure?
A
the ability of the company to efficiently use its fixed assets
2
Q
PPE Turnover
A
sales revenue / average PPE, net
3
Q
What is the PPE Turnover general rule?
A
the higher the better
4
Q
What is the PPE Turnover?
A
how efficient management utilized its plant assets
5
Q
PPE Percent Depreciated
A
accumulated depreciation / cost of depreciable asset
6
Q
What is the PPE Percent Depreciated general rule?
A
low –> company is new
high –> company has to buy CAPEX soon
7
Q
What is PPE Percent Depreciated?
A
how much of a company’s operating assets have been depreciated
