Autoliv Inc (ALV)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,353,000 | 8,838,000 | 8,201,000 | 7,352,100 | 8,465,200 |
| Property, plant and equipment | US$ in thousands | 2,192,000 | 1,960,000 | 1,855,000 | 1,869,000 | 1,815,700 |
| Fixed asset turnover | 4.72 | 4.51 | 4.42 | 3.93 | 4.66 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,353,000K ÷ $2,192,000K
= 4.72
Autoliv Inc.'s fixed asset turnover has shown fluctuations over the past five years, ranging from 3.98 to 4.78. The ratio indicates the company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.
In 2023, Autoliv Inc. achieved a fixed asset turnover of 4.78, which is higher compared to the previous two years but slightly lower than the 2019 ratio. This increase may signify improved efficiency in utilizing its fixed assets to generate sales revenue. However, it is essential to conduct a more in-depth analysis to understand the factors contributing to this change in performance.
Overall, Autoliv Inc.'s trend in fixed asset turnover reflects a relatively stable and efficient use of fixed assets to drive sales over the past five years, with fluctuations in the ratio possibly influenced by various operational and strategic factors impacting the business.
Peer comparison
Dec 31, 2023