Smith AO Corporation (AOS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,818,100 | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 |
| Property, plant and equipment | US$ in thousands | 628,700 | 597,500 | 590,700 | 606,700 | 541,300 |
| Fixed asset turnover | 6.07 | 6.43 | 6.34 | 5.83 | 5.34 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,818,100K ÷ $628,700K
= 6.07
The fixed asset turnover of Smith AO Corporation has shown a consistent upward trend over the years, increasing from 5.34 in December 2020 to 6.07 in December 2024. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets. The rising trend suggests that the company is efficiently utilizing its fixed assets to generate sales. However, a slight dip in 2024 compared to the previous year may warrant further investigation to understand the reason behind this change and assess the company's ongoing operational efficiency. Overall, the improving fixed asset turnover ratio reflects positively on the company's ability to effectively manage its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024