Acuity Brands Inc (AYI)
Fixed asset turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,913,100 | 3,981,400 | 3,461,000 | 3,326,300 | 3,672,700 |
| Property, plant and equipment | US$ in thousands | 297,600 | 276,500 | 269,100 | 270,500 | 277,300 |
| Fixed asset turnover | 13.15 | 14.40 | 12.86 | 12.30 | 13.24 |
August 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,913,100K ÷ $297,600K
= 13.15
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover indicates that the company is generating more sales from its investment in fixed assets, suggesting better asset utilization.
Looking at the historical trend of Acuity Brands, Inc.'s fixed asset turnover ratio from 2019 to 2023, we observe some fluctuations. In 2019, the fixed asset turnover was 13.24, indicating that the company generated $13.24 in sales for every dollar invested in fixed assets. This ratio increased to 12.30 in 2020, suggesting improved efficiency in utilizing fixed assets to generate sales revenue.
In 2021, the fixed asset turnover ratio further increased to 12.86, indicating that the company continued to generate more sales from its fixed assets. However, there was a slight decrease in 2022, with the fixed asset turnover ratio reaching 14.49, before decreasing to 13.28 in 2023.
The fluctuation in the fixed asset turnover ratio might be attributed to changes in the company's sales and the carrying amount of fixed assets. It's essential to consider any significant investments in fixed assets or changes in the sales volume that could impact the ratio.
Overall, the trend of Acuity Brands, Inc.'s fixed asset turnover ratio suggests that the company has been relatively efficient in utilizing its fixed assets to generate sales revenue, with some fluctuations in recent years. Further analysis of the company's investment in fixed assets and sales performance would provide a more comprehensive understanding of the factors influencing the fixed asset turnover ratio.
Peer comparison
Aug 31, 2023