Fixed Assets to Total Assets Ratio

Learn how to calculate the Fixed Assets to Total Assets Ratio with the following example:

OPQ Ltd. has the following data:
Land $120,000
Buildings $280,000
Motor car $25,000
Office equipment $22,000
Fixtures and fittings $4,000
Furnitures $16,000
Machinery $60,000
Inventories $23,000
Trade Debtors $110,000
Prepaid expenses $10,000
Bank $82,000
Cash $8,000

Then,
Fixed assets = Land + Buildings + Motor car + Office equipment + Fixtures and fittings + Furnitures + Machinery = 120,000 + 280,000 + 25,000 + 22,000 + 4,000 + 16,000 + 60,000 = $527,000
Current assets = Inventories + Trade Debtors + Prepaid expenses + Bank + Cash = 23,000 + 110,000 + 10,000 + 82,000 + 8,000 = $233,000
Total Assets = 527,000 + 233,000 = $760,000
Fixed Assets to Total Assets Ratio = 527,000 / 760,000 = 0.6934 = 69.34%
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