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', VRT's fixed asset turnover was 7.78, illustrating how efficiently fixed assets are generating revenue. Industry average for Industrial Machinery/Components in '2021' stood at 4.02.
• In '2022', VRT's fixed asset turnover was 8.77, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at 4.02. Industry average declined by 0.00 from previous year.
• In '2023', VRT's fixed asset turnover was 9.88, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at 3.94. Industry average declined by 0.08 from previous year.
• In '2024', VRT's fixed asset turnover was 10.27, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2024' stood at 3.90. Industry average declined by 0.05 from previous year.
Overall, VRT's fixed asset turnover has been volatile but showed an upward trend 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.