ArcBest Corp (ARCB)

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	4,493,120	4,653,130	4,876,850	5,166,410	5,326,350	5,274,290	4,938,980	4,495,079	3,997,842	3,620,356	3,398,646	3,076,929	2,942,547	2,843,551	2,836,113	2,980,260	2,988,521	3,045,382	3,083,878	3,105,669
Property, plant and equipment	US$ in thousands	914,824	862,090	828,533	805,300	800,170	745,717	709,619	692,374	695,921	684,307	665,944	662,698	678,690	678,057	660,806	663,460	683,592	680,074	651,949	622,976
Fixed asset turnover		4.91	5.40	5.89	6.42	6.66	7.07	6.96	6.49	5.74	5.29	5.10	4.64	4.34	4.19	4.29	4.49	4.37	4.48	4.73	4.99

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,493,120K ÷ $914,824K
= 4.91

Fixed asset turnover is a key efficiency ratio that measures how effectively a company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.

Looking at the data for ArcBest Corp over the past eight quarters, we observe a general decreasing trend in fixed asset turnover from Q1 2022 to Q4 2023. The ratio has declined from 6.48 in Q1 2022 to 4.84 in Q4 2023, indicating a decrease in the company's ability to generate sales from its fixed assets over this period.

The trend suggests that ArcBest Corp may be experiencing challenges in efficiently utilizing its fixed assets to drive revenue growth. This could be due to various factors such as underutilization of assets, changes in the company's operating efficiency, or slower growth in sales compared to the investment in fixed assets.

It is important for ArcBest Corp to closely monitor its fixed asset turnover ratio and identify the root causes of the decline to make necessary adjustments and improve efficiency in utilizing its fixed assets. This analysis highlights the importance of continuously assessing and optimizing the utilization of fixed assets to drive profitability and sustainable growth for the company.