Allegion PLC (ALLE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,553,800 | 3,186,000 | 2,820,400 | 2,668,100 | 2,763,400 |
| Property, plant and equipment | US$ in thousands | 358,100 | 308,700 | 283,700 | 294,900 | 291,400 |
| Fixed asset turnover | 9.92 | 10.32 | 9.94 | 9.05 | 9.48 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,553,800K ÷ $358,100K
= 9.92
Allegion plc's fixed asset turnover has remained relatively stable over the past five years, ranging between 9.22 and 10.60. This ratio measures the company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that Allegion is efficiently utilizing its fixed assets to generate sales.
The slight fluctuations in the fixed asset turnover ratio suggest that Allegion has been effectively managing its fixed assets over the years. The relatively high ratios, consistently above 9, reflect the company's efficiency in generating sales from its investment in fixed assets.
Overall, Allegion plc's fixed asset turnover indicates strong operational efficiency in utilizing its fixed assets to drive sales growth.