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:

Also known as: fixed asset efficiency, PP&E turnover.

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Calculate the Fixed Asset Turnover in Python

The Fixed Asset Turnover is available in 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:

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.

Related Efficiency Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.