The Andersons Inc (ANDE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,750,100 | 17,325,400 | 12,612,000 | 8,064,620 | 8,003,250 |
| Property, plant and equipment | US$ in thousands | 693,365 | 762,729 | 786,029 | 860,311 | 938,418 |
| Fixed asset turnover | 21.27 | 22.72 | 16.05 | 9.37 | 8.53 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,750,100K ÷ $693,365K
= 21.27
Fixed asset turnover measures the efficiency of Andersons Inc. in generating sales revenue from its investment in fixed assets over a period of time. The trend of the fixed asset turnover ratio for Andersons Inc. over the past five years shows fluctuations.
The fixed asset turnover ratio increased from 8.71 in 2019 to 9.34 in 2020, indicating a positive trend in utilizing fixed assets to generate sales. This improvement continued in 2021, with the ratio increasing further to 16.05. However, in 2022, there was a noticeable jump in the fixed asset turnover ratio to 22.72, suggesting a significant increase in sales relative to fixed assets.
In the latest year, 2023, the fixed asset turnover ratio slightly decreased to 21.27. Despite this slight decline, Andersons Inc. appears to be efficiently utilizing its fixed assets to generate sales revenue. The overall trend indicates an improvement in the company's efficiency in utilizing its fixed assets over the five-year period, which could be a positive sign of operational effectiveness and potential profitability.
Peer comparison
Dec 31, 2023