Adient PLC (ADNT)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,688,000 | 15,395,000 | 14,121,000 | 13,680,000 | 12,670,000 |
| Property, plant and equipment | US$ in thousands | 1,410,000 | 1,382,000 | 1,377,000 | 1,607,000 | 1,581,000 |
| Fixed asset turnover | 10.42 | 11.14 | 10.25 | 8.51 | 8.01 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,688,000K ÷ $1,410,000K
= 10.42
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Adient PLC's fixed asset turnover ratio has fluctuated over the past five years, ranging from 8.01 in 2020 to 11.14 in 2023.
In 2024, the fixed asset turnover ratio decreased to 10.42 from the previous year's peak of 11.14 in 2023. This decline indicates that Adient PLC generated less revenue per dollar of fixed assets in 2024 compared to 2023, suggesting a potential decrease in asset efficiency during the year.
However, despite the slight decrease in 2024, Adient PLC's fixed asset turnover ratio remains relatively high, indicating that the company is effectively utilizing its fixed assets to generate revenue. It is important for the company to continue monitoring and improving its asset utilization to ensure sustainable revenue growth and profitability in the long term.
Peer comparison
Sep 30, 2024