The Andersons Inc (ANDE)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,257,500 | 14,750,100 | 17,325,400 | 12,612,000 | 8,064,620 |
| Property, plant and equipment | US$ in thousands | 868,151 | 693,365 | 762,729 | 786,029 | 860,311 |
| Fixed asset turnover | 12.97 | 21.27 | 22.72 | 16.05 | 9.37 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,257,500K ÷ $868,151K
= 12.97
The fixed asset turnover ratio of The Andersons Inc has exhibited a notable upward trend over the past five years, indicating improved efficiency in generating revenue from its fixed assets. The ratio increased from 9.37 in December 31, 2020, to 16.05 in December 31, 2021, and further climbed to 22.72 in December 31, 2022, reaching its peak during that period.
However, there was a slight decline in the fixed asset turnover ratio to 21.27 in December 31, 2023, followed by a more significant decrease to 12.97 in December 31, 2024. Despite the recent dip in the ratio, it remains relatively high compared to the initial values, reflecting the company's ability to efficiently utilize its fixed assets to generate sales.
Overall, the fluctuation in the fixed asset turnover ratio suggests variations in the company's operational efficiency and effectiveness in managing its fixed assets to drive revenue growth. Further analysis and context regarding the company's industry dynamics and strategic decisions may provide insights into the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2024