AdvanSix Inc (ASIX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,524,830 | 1,942,860 | 1,679,600 | 1,150,210 | 1,290,570 |
| Property, plant and equipment | US$ in thousands | 850,483 | 811,065 | 767,964 | 765,469 | 755,881 |
| Fixed asset turnover | 1.79 | 2.40 | 2.19 | 1.50 | 1.71 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,524,830K ÷ $850,483K
= 1.79
Fixed asset turnover is a ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is generating more revenue per dollar of fixed assets.
Analyzing AdvanSix Inc's fixed asset turnover over the past five years, we observe fluctuations in the ratio. In 2023, the fixed asset turnover was 1.80, a decrease from the previous year's ratio of 2.40 in 2022. This suggests that AdvanSix Inc was able to generate less revenue per dollar of fixed assets in 2023 compared to 2022.
Comparing the data further back, we see that in 2021, the fixed asset turnover was 2.19, indicating an improvement in efficiency compared to 2020 when the ratio was 1.51. Despite the fluctuations, it is worth noting that the fixed asset turnover has generally been above 1, which indicates that AdvanSix Inc has been effectively utilizing its fixed assets to generate revenue.
Overall, it is essential for AdvanSix Inc to strive for consistent improvements in its fixed asset turnover to ensure optimal utilization of its fixed assets and maximization of revenue generation. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in this aspect.
Peer comparison
Dec 31, 2023