Fixed asset turnover (Fixed asset turns)
How many units of revenue each unit of property, plant and equipment produces.
It measures how hard the physical asset base is being worked.
How it is computed here
Revenue / net property, plant and equipment
Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Old, heavily depreciated assets have a low book value, which flatters this ratio.
- Leasing rather than owning removes assets from the denominator entirely.
Not meaningful for banks, insurers: the product prints n/m with the reason rather than a number for them.
Questions
How is fixed asset turnover calculated?
Revenue / net property, plant and equipment. Combines more than one basis. See the note. The pipeline prefers the data vendor's published trailing-twelve-month ratio when one exists, and falls back to recomputing from the latest filed fiscal year when it does not. Those two are different measurements: the vendor figure puts twelve months of flow over the most recent quarterly balance sheet. The source trail on each figure names which path produced it.
What does fixed asset turnover tell a value investor?
It measures how hard the physical asset base is being worked.
When does fixed asset turnover mislead?
Old, heavily depreciated assets have a low book value, which flatters this ratio. Leasing rather than owning removes assets from the denominator entirely.