Archer-Daniels-Midland Company (ADM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 93,935,000 | 101,556,000 | 85,249,000 | 64,355,000 | 64,656,000 |
| Property, plant and equipment | US$ in thousands | 10,508,000 | 9,933,000 | 9,803,000 | 9,779,000 | 10,106,000 |
| Fixed asset turnover | 8.94 | 10.22 | 8.70 | 6.58 | 6.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $93,935,000K ÷ $10,508,000K
= 8.94
Archer-Daniels-Midland Company's fixed asset turnover has exhibited fluctuations over the past five years, ranging from a low of 6.40 in 2019 to a high of 10.22 in 2022. The fixed asset turnover ratio indicates how effectively the company is utilizing its fixed assets to generate revenue. A higher ratio signifies greater efficiency in generating sales from its fixed assets.
The trend suggests that in 2022, the company was particularly efficient at utilizing its fixed assets to generate sales, with a ratio of 10.22. However, in 2019, the ratio was lower at 6.40, indicating less effective utilization of fixed assets.
Overall, the company's fixed asset turnover has generally shown an upward trend from 2019 to 2022, reflecting improved efficiency in utilizing fixed assets to drive sales. This trend suggests that Archer-Daniels-Midland Company has been able to generate more revenue per dollar invested in fixed assets over the years.
Peer comparison
Dec 31, 2023