Axalta Coating Systems Ltd (AXTA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,184,100 | 4,884,400 | 4,416,200 | 3,737,600 | 4,482,200 |
| Property, plant and equipment | US$ in thousands | 1,204,300 | 1,190,200 | 1,186,200 | 1,194,500 | 1,223,000 |
| Fixed asset turnover | 4.30 | 4.10 | 3.72 | 3.13 | 3.66 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,184,100K ÷ $1,204,300K
= 4.30
The fixed asset turnover ratio indicates how effectively a company utilizes its fixed assets to generate sales. A higher ratio suggests better asset utilization.
For Axalta Coating Systems Ltd, the fixed asset turnover has been increasing over the past five years, from 3.66 in 2019 to 4.30 in 2023. This improvement indicates that the company has been more efficient in generating sales revenue relative to its investment in fixed assets.
The trend suggests that Axalta Coating Systems Ltd has been effectively managing and utilizing its fixed assets to drive sales growth over the years. This could be attributed to improved operational efficiency, strategic investments in fixed assets, or better utilization of existing assets.
Overall, the increasing trend in fixed asset turnover reflects positively on Axalta Coating Systems Ltd's operational efficiency and indicates potential improvements in asset utilization, which is a favorable sign for investors and stakeholders.
Peer comparison
Dec 31, 2023