Alamo Group Inc (ALG)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,628,510 | 1,689,650 | 1,513,620 | 1,334,220 | 1,163,470 |
| Property, plant and equipment | US$ in thousands | — | — | 205,979 | 32,514 | 42,266 |
| Fixed asset turnover | — | — | 7.35 | 41.04 | 27.53 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,628,510K ÷ $—K
= —
The fixed asset turnover ratio is a key financial metric that measures a company's ability to generate revenue from its investment in fixed assets.
From the data provided, we can see that Alamo Group Inc's fixed asset turnover has fluctuated over the years. In December 2020, the ratio was 27.53, indicating that the company generated $27.53 in revenue for every dollar invested in fixed assets. This increased significantly to 41.04 by December 2021, showing improved efficiency in utilizing its fixed assets to generate revenue.
However, there was a sharp decline in the ratio to 7.35 by December 2022. This suggests that the company may have faced challenges in generating revenue from its fixed assets efficiently during that period.
The data for December 2023 and December 2024 is not available, denoted by "—". Without this information, we are unable to assess the company's fixed asset turnover for those years.
Overall, fluctuations in the fixed asset turnover ratio can indicate changes in how effectively the company is utilizing its fixed assets to generate revenue. It is important for Alamo Group Inc to monitor and improve this ratio to ensure optimal use of its assets and sustainable growth.
Peer comparison
Dec 31, 2024