Fixed Assets Turnover Ratio: It measures how effectively the firm uses its plant &

equipment to help generate sales. More times indicate to more efficient the company is to
generate more sales.

Ratio Equation 2018 2019

Pran Bashundhar Kazi Pran Bashundhar Kazi
Group a Group Group Group a Group Group
Fixed Sales 6.47 4.97 0.55 8.65 7.02 0.65
Assets Net Fixed Asset
Turnover

Interpretation:

The above ratio indicates the Fixed assets Turnover Ratio for Pran, Bashundhara and Kazi group
for 2018 and 2019. FATR referred to as efficiency of a company by utilizing all the fixed assets.
Higher FATR the more efficient a company is. In 2018, the Pran Group’s FATR position is up to
the mark which was 6.47times. So, their fixed assets are less than other two groups. In 2019, the
Pran Group has improved more and achieved 8.65 times of FATR. This group can generate more
sales by utilizing all its assets. But Kai Group’s position is the worst. They can generate sales
only 0.65 times so proper utilization is not happening here. Basundara Group is in moderate
position but if we compare their two years performance their FATR has increased by 2.05 times.
So Kazi Group should take necessary steps to dispose unnecessary fixed assets and increase
sales.