Accumulated Depreciation to Fixed Assets Ratio Formula

Investors use mostly Accumulated Depreciation to Fixed Assets Ratio Formula to find the productiveness of the invested capital of the company infixed assets. If the result of this ratio is low it means that the fixed assets of the company have plenty of life left and maybe use for years to come. If the result given by the formula is high then the fixed assets of the company need to replace immediately.

Accumulated Depreciation to Fixed Assets Ratio Formula can be calculated by dividing the total accumulated depreciation by the total fixed assets.

Accumulated Depreciation to Fixed Assets Ratio Formula= Accumulated depreciation/Total Fixed Assets

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