FIXED ASSET TURNOVER measures managements ability to generate revenues from investments in fixed assets. FAT considers only the firms investment in property, plant and equipment and is extremely important in high asset firms such as manufactures and telecommunications companies. Generally, the higher this ratio:
A declining ratio may indicate that the firm has over-invested in plant, equipment, or other fixed assets. Formula: Net Revenues / Fixed Assets
COST CONTROL is the process of controlling the cost of a project within a predetermined sum throughout its various stages from inception to completion.
UNUSUAL EXPENSES/(INCOME) is the sum of: Restructuring Charge, Litigation, Impairment of assets held for use or sale, portion of Purchased R&D written off, and Other Unusual Expense (Income).
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