calculate_fixed_asset_turnover
Calculate fixed asset turnover: net sales divided by average net fixed assets — how efficiently a company uses its plant, property and equipment to generate sales. Formula: Fixed Asset Turnover = Net Sales / Average Net Fixed Assets. WHEN TO USE: Use for capital-intensive businesses to gauge whether fixed assets are earning their keep (e.g. manufacturing, logistics). WHEN NOT TO USE: Do NOT use for asset-light businesses (software, services) where the ratio is misleadingly high and uninformative. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { fixed_asset_turnover: number (e.g. 2.1 = 2.1x per year), inputs }. PARAMETERS: net_sales (required): Net sales / revenue for the period, e.g. 900000. Must be >= 0. begin_net_fixed_assets (required): Net fixed assets (PP&E after depreciation) at period start, e.g. 400000. Must be >= 0. end_net_fixed_assets (required): Net fixed assets at period end, e.g. 450000. Must be >= 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| net_sales | Yes | Net sales / revenue for the period, e.g. 900000. Must be >= 0. | |
| end_net_fixed_assets | Yes | Net fixed assets at period end, e.g. 450000. Must be >= 0. | |
| begin_net_fixed_assets | Yes | Net fixed assets (PP&E after depreciation) at period start, e.g. 400000. Must be >= 0. |