American Axle & Manufacturing (AXL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,079,500 | 5,802,400 | 5,156,600 | 4,710,800 | 6,530,900 |
| Property, plant and equipment | US$ in thousands | 1,760,900 | 1,903,000 | 1,996,100 | 2,163,800 | 2,358,400 |
| Fixed asset turnover | 3.45 | 3.05 | 2.58 | 2.18 | 2.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,079,500K ÷ $1,760,900K
= 3.45
The fixed asset turnover of American Axle & Manufacturing Holdings Inc has shown a varying trend over the past five years. The company's fixed asset turnover ratio increased from 2.77 in 2019 to 3.45 in 2023, indicating that the company generated $3.45 in sales for every $1 invested in fixed assets in 2023.
This improvement suggests that American Axle has become more efficient in utilizing its fixed assets to generate revenue over the years. A higher fixed asset turnover ratio is generally favorable as it implies better asset utilization and efficiency in generating sales.
The fluctuations in the fixed asset turnover ratio could be attributed to various factors, including changes in production efficiency, investment in new technologies, or shifts in the company's business operations. It is essential for stakeholders to monitor these trends to assess the company's operational performance and growth prospects.
Peer comparison
Dec 31, 2023