Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', RMD's fixed asset turnover was 5.40, illustrating how efficiently fixed assets are generating revenue. Industry average for Medical/Dental Instruments in '2021' stood at 3.15.
• In '2022', RMD's fixed asset turnover was 5.85, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2022' stood at 2.80. Industry average declined by 0.35 from previous year.
• In '2023', RMD's fixed asset turnover was 6.52, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2023' stood at 3.06. Industry average increased by 0.25 compared to previous year.
• In '2024', RMD's fixed asset turnover was 6.87, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2024' stood at 3.33. Industry average increased by 0.27 compared to previous year.
Overall, RMD's fixed asset turnover has steadily improved over the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.