Alcoa Corp (AA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,494,000 | 12,326,000 | 11,911,000 | 9,120,000 | 10,296,000 |
| Property, plant and equipment | US$ in thousands | 6,785,000 | 6,493,000 | 6,623,000 | 7,190,000 | 7,916,000 |
| Fixed asset turnover | 1.55 | 1.90 | 1.80 | 1.27 | 1.30 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,494,000K ÷ $6,785,000K
= 1.55
The fixed asset turnover ratio for Alcoa Corp has fluctuated over the past five years. In 2023, the ratio decreased to 1.56 from 1.92 in 2022, indicating that the company generated $1.56 in sales for every $1 invested in fixed assets. This decline may suggest a decrease in efficiency in utilizing its fixed assets to generate revenue compared to the previous year. However, it is worth noting that the ratio in 2023 is still higher than the ratios in 2020 and 2019, indicating an improvement in asset turnover efficiency over the earlier years. Further analysis is needed to understand the factors contributing to the fluctuations in the fixed asset turnover ratio over the years.
Peer comparison
Dec 31, 2023