Smith AO Corporation (AOS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 | 2,981,700 |
| Property, plant and equipment | US$ in thousands | 597,500 | 590,700 | 606,700 | 541,300 | 545,400 |
| Fixed asset turnover | 6.43 | 6.34 | 5.83 | 5.34 | 5.47 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,840,800K ÷ $597,500K
= 6.43
A.O. Smith Corp.'s fixed asset turnover has shown a consistent increasing trend over the past five years, from 5.49 in 2019 to 6.45 in 2023. This indicates that the company is generating more revenue per dollar invested in fixed assets.
The higher fixed asset turnover ratio suggests that A.O. Smith Corp. is efficiently utilizing its fixed assets to generate sales. This could be attributed to effective asset management, operational efficiency, or increased sales volume without a corresponding significant increase in fixed assets.
The steady improvement in fixed asset turnover ratio can be seen as a positive sign of operational effectiveness and productivity within the company. It reflects the company's ability to efficiently use its fixed assets to drive revenue growth and overall performance.
Peer comparison
Dec 31, 2023