The Andersons Inc (ANDE)
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 | 14,750,110 | 16,214,600 | 16,798,230 | 17,228,670 | 17,325,380 | 16,430,590 | 15,210,090 | 13,995,270 | 12,612,040 | 11,337,640 | 10,224,410 | 8,843,350 | 8,064,620 | 7,441,920 | 7,539,090 | 8,009,390 | 8,170,190 | 7,097,252 | 5,800,071 | 4,386,433 |
| Property, plant and equipment | US$ in thousands | 693,365 | 680,188 | 663,441 | 678,717 | 762,729 | 765,939 | 763,443 | 772,245 | 786,029 | 797,660 | 823,563 | 839,950 | 860,311 | 870,151 | 906,017 | 921,585 | 938,418 | 703,396 | 695,827 | 671,805 |
| Fixed asset turnover | 21.27 | 23.84 | 25.32 | 25.38 | 22.71 | 21.45 | 19.92 | 18.12 | 16.05 | 14.21 | 12.41 | 10.53 | 9.37 | 8.55 | 8.32 | 8.69 | 8.71 | 10.09 | 8.34 | 6.53 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,750,110K ÷ $693,365K
= 21.27
The fixed asset turnover ratio for Andersons Inc. has shown a consistent upward trend over the past eight quarters, indicating that the company is generating more sales revenue relative to its investment in fixed assets. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales.
The ratio has increased from 18.07 in Q1 2022 to 25.38 in Q1 2023, reaching a peak in Q2 2023 at 25.32 before slightly declining in the most recent quarter at 21.27. Despite the slight dip in Q4 2023, the ratio remains significantly higher than the levels observed in the previous years.
The increasing trend in fixed asset turnover suggests that Andersons Inc. has been able to enhance its operational efficiency and generate more revenue from its fixed assets. This could be attributed to improvements in production processes, better asset utilization, or increased demand for the company's products.
Overall, the continuous improvement in the fixed asset turnover ratio reflects positively on Andersons Inc.'s management of its fixed assets and signifies a healthy level of efficiency in generating sales from its investment in property, plant, and equipment.
Peer comparison
Dec 31, 2023