Avantor Inc (AVTR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,967,200 | 7,512,400 | 7,386,100 | 6,393,600 | 6,040,300 |
| Property, plant and equipment | US$ in thousands | 737,500 | 727,000 | 705,500 | 549,900 | 557,000 |
| Fixed asset turnover | 9.45 | 10.33 | 10.47 | 11.63 | 10.84 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,967,200K ÷ $737,500K
= 9.45
The fixed asset turnover ratio for Avantor Inc has been consistently high over the past five years, ranging from 9.45 to 11.63. This indicates that the company is efficient in generating sales revenue relative to its investment in fixed assets. A high fixed asset turnover ratio typically signifies effective utilization of assets to generate sales, which is a positive indicator of operational efficiency and asset productivity within the company. Avantor Inc's ability to generate a high level of revenue from its fixed assets suggests effective management of its asset base, which can lead to improved profitability and return on investment.
Peer comparison
Dec 31, 2023