Avient Corp (AVNT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,025,600	3,817,600	4,743,500	3,167,500	2,803,200
Property, plant and equipment	US$ in thousands	1,028,900	1,049,200	672,300	694,900	407,400
Fixed asset turnover		2.94	3.64	7.06	4.56	6.88

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,025,600K ÷ $1,028,900K
= 2.94

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue relative to its investment in fixed assets. The trend analysis of Avient Corp's fixed asset turnover shows fluctuations over the past five years.

In 2023, the fixed asset turnover ratio decreased to 3.05 from 3.24 in 2022, indicating a decline in the efficiency of generating sales from fixed assets. This may suggest that the company's fixed assets are not being utilized as effectively in generating revenue compared to the previous year.

However, when compared to 2021 and 2020, the fixed asset turnover ratio in 2023 is lower, suggesting potential inefficiencies in asset utilization during the year. In 2021, the fixed asset turnover ratio was significantly higher at 7.13, indicating a more efficient use of fixed assets to generate sales revenue.

The fluctuation in the fixed asset turnover ratio over the years could be attributed to changes in sales levels, asset base, or operational efficiency. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors driving the changes in fixed asset turnover.