Smith AO Corporation (AOS)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,817,100 | 3,891,700 | 3,924,200 | 3,856,200 | 3,840,800 | 3,786,500 | 3,723,200 | 3,730,700 | 3,744,500 | 3,805,900 | 3,847,700 | 3,742,800 | 3,534,600 | 3,375,000 | 3,219,800 | 3,022,300 | 2,889,000 | 2,805,400 | 2,772,100 | 2,872,700 |
| Property, plant and equipment | US$ in thousands | 628,700 | 624,600 | 603,200 | 599,000 | 597,500 | 581,100 | 576,800 | 585,500 | 590,700 | 583,600 | 592,700 | 602,800 | 606,700 | 539,500 | 539,700 | 539,100 | 541,300 | 537,100 | 533,800 | 537,300 |
| Fixed asset turnover | 6.07 | 6.23 | 6.51 | 6.44 | 6.43 | 6.52 | 6.45 | 6.37 | 6.34 | 6.52 | 6.49 | 6.21 | 5.83 | 6.26 | 5.97 | 5.61 | 5.34 | 5.22 | 5.19 | 5.35 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,817,100K ÷ $628,700K
= 6.07
Smith AO Corporation's fixed asset turnover has been showing a generally increasing trend over the past few years. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
The ratio increased from 5.35 in March 2020 to a peak of 6.52 in September 2022, suggesting that the company improved its ability to generate sales from its investment in fixed assets during this period.
However, there was a slight dip in the ratio in December 2022 to 6.34 and further fluctuations in the following quarters. Despite these fluctuations, the ratio has generally remained above 6, indicating that the company is effectively utilizing its fixed assets to generate revenue.
Overall, the increasing trend in Smith AO Corporation's fixed asset turnover ratio signifies improved efficiency in utilizing its fixed assets to generate sales, which is a positive indicator of the company's operational performance.
Peer comparison
Dec 31, 2024