Allegion PLC (ALLE)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,553,800 | 3,529,000 | 3,524,800 | 3,385,400 | 3,186,000 | 3,072,600 | 2,875,900 | 2,849,700 | 2,820,400 | 2,833,700 | 2,845,100 | 2,687,700 | 2,668,100 | 2,621,500 | 2,641,400 | 2,783,100 | 2,763,400 | 2,783,600 | 2,746,800 | 2,720,300 |
| Property, plant and equipment | US$ in thousands | 358,100 | 334,900 | 329,100 | 319,600 | 308,700 | 290,700 | 278,000 | 280,800 | 283,700 | 278,600 | 286,800 | 285,700 | 294,900 | 293,700 | 292,500 | 289,200 | 291,400 | 281,900 | 281,700 | 275,100 |
| Fixed asset turnover | 9.92 | 10.54 | 10.71 | 10.59 | 10.32 | 10.57 | 10.34 | 10.15 | 9.94 | 10.17 | 9.92 | 9.41 | 9.05 | 8.93 | 9.03 | 9.62 | 9.48 | 9.87 | 9.75 | 9.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,553,800K ÷ $358,100K
= 9.92
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. It indicates how efficiently a company is utilizing its fixed assets to generate revenue.
Looking at the fixed asset turnover ratios of Allegion plc over the past eight quarters, we can see that the company has consistently maintained a high level of efficiency in generating revenue from its fixed assets. The ratios have been consistently above 10, indicating that Allegion plc is effectively using its fixed assets to generate sales.
There was a slight fluctuation in the ratio over the quarters, ranging from 10.19 to 10.97. However, the overall trend shows that Allegion plc has been able to maintain a strong performance in terms of utilizing its fixed assets efficiently to drive revenue generation.
Based on the trend of the fixed asset turnover ratio, it can be inferred that Allegion plc is effectively managing and utilizing its fixed assets to generate sales revenue, which is a positive sign of operational efficiency and financial performance.