Allegheny Technologies Incorporated (ATI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,050,200 | 3,594,600 | 2,646,300 | 2,858,800 | 4,079,500 |
| Property, plant and equipment | US$ in thousands | 1,665,900 | 1,549,100 | 1,528,500 | 1,469,200 | 2,450,100 |
| Fixed asset turnover | 2.43 | 2.32 | 1.73 | 1.95 | 1.67 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,050,200K ÷ $1,665,900K
= 2.43
Fixed asset turnover is a financial ratio that measures a company's ability to generate 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.
Analyzing ATI Inc's fixed asset turnover over the past five years, we can see a generally positive trend. The ratio has been steadily increasing from 1.68 in 2019 to 2.51 in 2023. This suggests that ATI Inc has been improving its efficiency in generating sales relative to its investment in fixed assets over the years.
A fixed asset turnover ratio of 2.51 in 2023 means that ATI Inc generated $2.51 in sales for every dollar invested in fixed assets during that year. This indicates that the company is effectively utilizing its fixed assets to drive revenue growth.
Overall, the increasing trend in ATI Inc's fixed asset turnover ratio reflects improved operational efficiency and effective utilization of fixed assets, which is a positive indicator of the company's financial performance and asset management capabilities.