With the data belowhow do we know that BB&B is doingwell as far as its usage of PPE to generate sales? Should we, perhaps, trend this ratio over time to make a determination?

How is the fixed-asset turnover ratio computed?

The fixed-asset turnover for the company Bed Bath & Beyond is computed by dividing net sales by average fixed assets. With having a ratio of 7.8355 for the company, this indicates that Bed Bath & Beyond can generate about 7.84 in net sale for every dollar invested in the fixed assets.

Discuss how you would interpret Bed Bath & Beyond's ratio of 7.8355?

The book value of PP&E at the beginning of 2011 1,119,292

Then add the purchasing that was done during 2011 183,474

Then a deduction of the book value of the PP&E that

was sold during 2011 -2,649

Then a deduction of the depreciation for 2011 -183,820

So the value of the PP&E for the end of 2011 would be 1,116,297

The average PP&E for 2011 would: (1119292 + 1116297) then / by 2 =

1,117,794.5

7.8355 will equal to net sale / average PP&E = 8,758,479