Axalta Coating Systems Ltd (AXTA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,276,000 | 5,184,000 | 4,884,400 | 4,416,200 | 3,737,600 |
| Property, plant and equipment | US$ in thousands | 1,181,000 | 1,204,000 | 1,190,200 | 1,186,200 | 1,194,500 |
| Fixed asset turnover | 4.47 | 4.31 | 4.10 | 3.72 | 3.13 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,276,000K ÷ $1,181,000K
= 4.47
The fixed asset turnover of Axalta Coating Systems Ltd has shown a positive trend over the past five years, increasing from 3.13 in December 2020 to 4.47 in December 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio typically implies that the company is effectively utilizing its fixed assets to generate sales.
The steady increase in the fixed asset turnover ratio suggests that Axalta Coating Systems Ltd has improved its operational efficiency and effectiveness in utilizing its fixed assets to generate sales over the years. This improvement can be attributed to factors such as better asset management, increased productivity, and possibly strategic investments in technology or equipment.
Overall, the upward trend in the fixed asset turnover ratio reflects positively on the company's operational performance and asset utilization efficiency. It indicates that Axalta Coating Systems Ltd is effectively leveraging its fixed assets to generate revenue, which is a favorable signal for investors and stakeholders interested in the company's financial health.
Peer comparison
Dec 31, 2024