Return On Fixed Asset

Definition

Return on Fixed Assets is an indicator of how profitable a company is relative to its fixed assets. A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time. Buildings, real estate, equipment and furniture are good examples of fixed assets. Generally, intangible long-term assets such as trademarks and patents are not categorized as fixed assets but are more specifically referred to as "fixed intangible assets".

Calculation Rules

Net income / Fixed assets