Fixed Asset Turnover
Calculate the Fixed Asset Turnover ratio, an efficiency ratio that measures how efficiently a company uses its fixed assets to generate sales.
The Fixed Asset Turnover ratio is calculated by dividing the company’s net sales by the average fixed assets. It indicates how well a company is utilizing its fixed assets to generate revenue. A higher ratio suggests more efficient utilization of fixed assets.
The formula is as follows:
\[\text{Fixed Asset Turnover Ratio} = \text{Net Sales} / \text{Average Fixed Assets}\]Also known as: fixed asset efficiency, PP&E turnover.
Fixed Asset Turnover in Python
get_fixed_asset_turnover is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_fixed_asset_turnover as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
fixed_asset_turnover_ratios = toolkit.ratios.get_fixed_asset_turnover()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 1.846 | 1.8192 | 1.7979 | 1.8576 | 1.9664 |
| TSLA | 1.7804 | 2.1312 | 1.9665 | 1.6185 | 1.4273 |
Parameters
get_fixed_asset_turnover accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.