Alamo Group Inc (ALG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,689,650 | 1,513,620 | 1,334,220 | 1,163,470 | 1,119,140 |
| Property, plant and equipment | US$ in thousands | 166,660 | 155,007 | 152,491 | 155,314 | 160,466 |
| Fixed asset turnover | 10.14 | 9.76 | 8.75 | 7.49 | 6.97 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,689,650K ÷ $166,660K
= 10.14
The fixed asset turnover ratio for Alamo Group Inc. has shown a consistent upward trend over the past five years, indicating increasing efficiency in the utilization of the company's fixed assets to generate sales revenue. The ratio improved from 5.15 in 2019 to 8.21 in 2023.
A higher fixed asset turnover ratio suggests that the company is generating more sales revenue per dollar of investment in fixed assets, which is a positive sign of operational efficiency. This improvement could be attributed to better asset management, increased production capacity utilization, or more effective sales and marketing strategies.
Overall, the increasing trend in Alamo Group Inc.'s fixed asset turnover ratio highlights the company's ability to effectively leverage its fixed assets to drive sales growth and create value for shareholders.
Peer comparison
Dec 31, 2023