Allegheny Technologies Incorporated (ATI)
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 | 4,174,000 | 4,019,000 | 4,025,400 | 3,938,900 | 3,710,300 | 3,397,000 | 3,104,400 | 2,761,100 | 2,645,000 | 2,707,600 | 2,566,200 | 2,698,800 | 2,963,100 | 3,301,800 | 3,790,600 | 4,143,700 | 4,190,500 | 4,231,400 | 4,164,800 | 4,072,400 |
| Property, plant and equipment | US$ in thousands | 1,665,900 | 1,626,300 | 1,568,100 | 1,551,800 | 1,549,100 | 1,496,700 | 1,491,300 | 1,502,600 | 1,528,500 | 1,487,600 | 1,486,300 | 1,478,700 | 1,469,200 | 2,466,600 | 2,455,000 | 2,445,500 | 2,450,100 | 2,407,500 | 2,404,900 | 2,470,700 |
| Fixed asset turnover | 2.51 | 2.47 | 2.57 | 2.54 | 2.40 | 2.27 | 2.08 | 1.84 | 1.73 | 1.82 | 1.73 | 1.83 | 2.02 | 1.34 | 1.54 | 1.69 | 1.71 | 1.76 | 1.73 | 1.65 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,174,000K ÷ $1,665,900K
= 2.51
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets.
In the case of ATI Inc, the fixed asset turnover has shown a consistent upward trend over the past eight quarters, increasing from 1.96 in Q1 2022 to 2.63 in Q2 2023. This indicates that ATI Inc has been effectively utilizing its fixed assets to generate revenue, with each dollar invested in fixed assets contributing more to the company's sales over time.
The improvement in the fixed asset turnover ratio suggests that ATI Inc has been able to increase its revenue relative to its investment in fixed assets, potentially through better asset utilization, improved operational efficiency, or effective capital expenditure decisions.
Overall, the trend of increasing fixed asset turnover indicates that ATI Inc is effectively managing and optimizing its fixed asset base to drive revenue growth, which is a positive sign for investors and stakeholders. It shows that the company is making efficient use of its assets to support its business operations and generate value for shareholders.