Average Net Fixed Assets

Definition: Average Net Fixed Assets is the simple arithmetic average of beginning and ending Net Property, Plant and Equipment for a reporting period: (Beginn…

Average Net Fixed Assets is the simple arithmetic average of beginning and ending Net Property, Plant and Equipment for a reporting period: (Beginning Net PP&E + Ending Net PP&E) / 2. 'Net' means the cost of fixed assets minus accumulated depreciation. It is the denominator of the Fixed Asset Turnover ratio (Net Sales / Average Net Fixed Assets), which measures how efficiently a company generates revenue from its long-lived productive assets.