The Boeing Company (BA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 77,794,000 | 66,608,000 | 62,286,000 | 58,158,000 | 76,559,000 |
| Property, plant and equipment | US$ in thousands | 10,661,000 | 10,550,000 | 10,918,000 | 11,820,000 | 12,502,000 |
| Fixed asset turnover | 7.30 | 6.31 | 5.70 | 4.92 | 6.12 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $77,794,000K ÷ $10,661,000K
= 7.30
The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is generating more sales relative to its investment in fixed assets.
Boeing Co.'s fixed asset turnover has shown a generally increasing trend over the past five years, from 6.12 in 2019 to 7.30 in 2023. This indicates that the company has been able to generate more revenue from its fixed assets over this period.
The increase in the fixed asset turnover ratio suggests that Boeing Co. has become more efficient in utilizing its fixed assets to generate sales. This may be attributed to improved operational efficiency, better asset utilization, or an increase in sales relative to the investment in fixed assets.
Overall, the increasing trend in Boeing Co.'s fixed asset turnover ratio indicates the company's ability to effectively utilize its fixed assets to generate sales, which is a positive indication of operational efficiency and asset management.
Peer comparison
Dec 31, 2023