American Woodmark Corporation (AMWD)
Fixed asset turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,847,500 | 2,066,200 | 1,857,190 | 1,744,010 | 1,645,320 |
| Property, plant and equipment | US$ in thousands | 272,461 | 219,415 | 213,808 | 204,002 | 208,263 |
| Fixed asset turnover | 6.78 | 9.42 | 8.69 | 8.55 | 7.90 |
April 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,847,500K ÷ $272,461K
= 6.78
American Woodmark Corporation's fixed asset turnover has experienced fluctuations over the past five years. The ratio decreased from 7.90 in April 2019 to 8.55 in April 2021, before declining further to 8.69 in April 2022. However, in the most recent two years, the ratio improved, reaching 9.42 in April 2023 and 6.78 in April 2024.
A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate revenue. The recent decline in the fixed asset turnover ratio in 2024 compared to 2023 may suggest a decrease in efficiency in generating sales from fixed assets or an increase in the book value of fixed assets.
It is essential for American Woodmark Corporation to monitor this ratio closely and ensure that the company is effectively managing its fixed assets to maximize revenue generation. Further analysis of the company's operational efficiency and capital investment strategies may provide insights into the factors influencing the fluctuations in the fixed asset turnover ratio.