Avient Corp (AVNT)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,240,400 | 3,212,900 | 3,151,400 | 3,126,100 | 3,142,800 | 3,214,200 | 3,283,800 | 3,761,800 | 4,209,900 | 4,621,000 | 5,017,500 | 4,950,300 | 4,818,800 | 4,614,300 | 4,319,000 | 3,692,900 | 3,242,100 | 2,903,700 | 2,684,500 | 2,979,200 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 978,200 | 1,007,400 | 1,045,700 | 1,049,200 | 965,400 | 638,900 | 661,900 | 750,200 | 751,200 | 767,400 | 675,500 | 694,900 | 762,800 | 459,000 | 459,700 |
| Fixed asset turnover | — | — | — | — | — | 3.29 | 3.26 | 3.60 | 4.01 | 4.79 | 7.85 | 7.48 | 6.42 | 6.14 | 5.63 | 5.47 | 4.67 | 3.81 | 5.85 | 6.48 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,240,400K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Higher values indicate better efficiency in generating sales from fixed assets.
Looking at the historical trend of Avient Corp's fixed asset turnover ratio, we notice fluctuations in the ratio over the reporting periods. The ratio shows a strong performance in the earlier periods, reaching a peak of 7.85 on June 30, 2022, indicating that the company was generating significant sales relative to its investment in fixed assets during that time.
However, in more recent periods, the fixed asset turnover ratio has decreased, dropping to 3.26 on June 30, 2023. This decline suggests a potential decrease in the efficiency of utilizing fixed assets to generate sales during that period.
The ratio remained relatively stable around 3 to 4 for the subsequent periods until December 31, 2023, after which the data is unavailable. The decreasing trend in the fixed asset turnover ratio post-June 2022 could imply various factors affecting the company's operations, such as changes in production capacity, asset utilization, or sales performance.
A low or declining fixed asset turnover ratio may indicate underutilization of fixed assets or a decrease in sales generated from these assets, which could be areas of concern for management to address to improve operational efficiency and profitability.
Peer comparison
Dec 31, 2024