Aecom Technology Corporation (ACM)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,378,500 | 13,148,200 | 13,340,900 | 13,240,000 | 13,642,500 |
| Property, plant and equipment | US$ in thousands | 382,638 | 428,239 | 398,876 | 381,700 | 405,605 |
| Fixed asset turnover | 37.58 | 30.70 | 33.45 | 34.69 | 33.63 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,378,500K ÷ $382,638K
= 37.58
The fixed asset turnover ratio measures the efficiency of a company in generating sales from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio generally indicates that the company is utilizing its fixed assets more effectively to generate sales.
Based on the provided data, AECOM's fixed asset turnover ratio has shown a fluctuating trend over the past five years. In Sep 30, 2023, the fixed asset turnover ratio is 37.58, which indicates that AECOM generated $37.58 in sales for every dollar invested in fixed assets during that period. This represents a significant increase from the previous year.
In contrast, the ratio was 30.70 in Sep 30, 2022, indicating a decrease in the efficiency of utilizing fixed assets compared to the recent year. However, it's important to note that the number in 2022 was still higher than the ratio in 2021, which was 33.45.
In Sep 30, 2020, the fixed asset turnover ratio was 34.69, and in Sep 30, 2019, it was 36.06. Both of these ratios show a downward trend compared to the most recent two years. This indicates that the company's utilization of fixed assets to generate sales was higher in the recent years.
Overall, the fluctuation in AECOM's fixed asset turnover ratio suggests varying levels of efficiency in utilizing fixed assets to generate sales. It's important for the company to assess the reasons behind these fluctuations and take necessary measures to improve the efficiency of its fixed asset utilization, thereby increasing the turnover ratio and achieving better overall performance.
Peer comparison
Sep 30, 2023