Barnes Group Inc (B)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,388,550 | 1,247,580 | 1,243,100 | 1,107,020 | 1,463,750 |
| Property, plant and equipment | US$ in thousands | 402,697 | 320,139 | 341,462 | 370,947 | 356,603 |
| Fixed asset turnover | 3.45 | 3.90 | 3.64 | 2.98 | 4.10 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,388,550K ÷ $402,697K
= 3.45
Barnes Group Inc.'s fixed asset turnover has exhibited fluctuating trends over the past five years, ranging from 3.03 to 4.18. The fixed asset turnover ratio indicates the efficiency with which the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is generating more revenue relative to its investment in fixed assets.
In the most recent year, the fixed asset turnover ratio decreased to 3.60 from 3.94 in the previous year. This decline may indicate a decrease in the efficiency of utilizing fixed assets to generate revenue. Further analysis is required to understand the reasons behind this decrease, such as changes in business operations, asset utilization, or revenue generation strategies.
Overall, Barnes Group Inc. has demonstrated varying levels of efficiency in utilizing its fixed assets to generate revenue over the years, and continuous monitoring and analysis of this ratio can provide insights into the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2023