Avient Corp (AVNT)

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	3,025,600	3,616,800	3,679,400	4,170,600	4,630,600	4,533,100	4,947,900	4,877,400	4,743,500	4,556,500	4,250,500	3,627,700	3,186,800	2,848,400	2,643,400	2,938,100	3,120,000	3,295,400	3,473,000	3,484,000
Property, plant and equipment	US$ in thousands	1,028,900	978,200	1,007,400	1,045,700	1,049,200	965,400	638,900	661,900	672,300	669,600	680,100	675,500	694,900	674,500	400,800	400,800	407,400	386,000	498,500	497,100
Fixed asset turnover		2.94	3.70	3.65	3.99	4.41	4.70	7.74	7.37	7.06	6.80	6.25	5.37	4.59	4.22	6.60	7.33	7.66	8.54	6.97	7.01

December 31, 2023 calculation

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

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover indicates that a company is generating more sales for each dollar invested in fixed assets.

In the case of Avient Corp, the fixed asset turnover ratio has been fluctuating over the past eight quarters. In Q4 2023, the ratio was 3.05, indicating that the company generated $3.05 in revenue for every dollar invested in fixed assets. This represents an improvement from the previous quarter's ratio of 2.45.

Looking further back, the fixed asset turnover ratio has shown variability, with the ratio reaching its peak of 7.85 in Q2 2022 and hitting its low of 2.45 in Q3 2023 and Q2 2023.

Overall, the trend suggests that Avient Corp has experienced fluctuations in its efficiency in utilizing fixed assets to generate revenue. It is important for the company to monitor and manage its fixed asset turnover to ensure optimal utilization of its assets and maximize profitability.