The Wilson Company has provided the following information: • Net sales,$200,000
• Net operating income,$40,000
• Net income,$20,000
• Average total assets,$125,000
• Average net fixed assets;$80,000
What is Wilson's fixed asset turnover ratio?

A) 1.60
B) 2.50
C) 0.25
D) 0.50

Fixed Asset Turnover Ratio

This ratio measures how effectively a company uses its fixed assets to generate sales, calculated as net sales divided by average fixed assets.

Net Operating Income

A calculation used to analyze the profitability of income-generating real estate investments, which subtracts all operating expenses from all revenue generated from properties.

Average Net Fixed Assets

The average value of a company's property, plant, and equipment (PP&E) net of accumulated depreciation over a certain period.