American Axle & Manufacturing (AXL)

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	6,082,900	5,993,300	5,982,700	5,857,600	5,803,400	5,698,900	5,340,500	5,177,100	5,158,900	5,356,300	5,579,500	4,808,200	4,722,100	4,702,800	4,965,800	6,209,400	6,644,200	6,735,600	6,934,600	7,131,200
Property, plant and equipment	US$ in thousands	1,760,900	1,765,400	1,817,900	1,864,700	1,903,000	1,905,300	1,980,600	1,947,800	1,996,100	1,992,300	2,067,000	2,115,800	2,163,800	2,157,900	2,209,900	2,275,200	2,358,400	2,326,400	2,544,400	2,537,600
Fixed asset turnover		3.45	3.39	3.29	3.14	3.05	2.99	2.70	2.66	2.58	2.69	2.70	2.27	2.18	2.18	2.25	2.73	2.82	2.90	2.73	2.81

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,082,900K ÷ $1,760,900K
= 3.45

American Axle & Manufacturing Holdings Inc has demonstrated a generally improving trend in fixed asset turnover over the past eight quarters. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates more efficient utilization of fixed assets.

The fixed asset turnover has progressively increased from 2.65 in Q1 2022 to 3.45 in Q4 2023, indicating an improving efficiency in generating revenue from its fixed assets. This suggests that the company has been more effective in using its fixed assets to generate sales over time.

Consistently increasing fixed asset turnover ratios demonstrate that American Axle & Manufacturing Holdings Inc has been able to generate more revenue relative to its investment in fixed assets. This could be due to factors such as better management of assets, increased productivity, or a focus on improving operational efficiency.

Overall, the upward trend in fixed asset turnover is a positive indicator of the company's ability to generate revenue efficiently from its fixed assets. However, it would be important to consider other financial metrics and external factors to get a comprehensive view of the company's financial performance and operational efficiency.