Ball Corporation (BALL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,557,000 | 15,054,000 | 13,623,000 | 11,567,000 | 11,319,000 |
| Property, plant and equipment | US$ in thousands | 7,372,000 | 7,042,000 | 6,488,000 | 5,340,000 | 4,470,000 |
| Fixed asset turnover | 1.84 | 2.14 | 2.10 | 2.17 | 2.53 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,557,000K ÷ $7,372,000K
= 1.84
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. Ball Corp.'s fixed asset turnover has shown a declining trend over the past five years, from 2.57 in 2019 to 1.90 in 2023.
A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets. The decrease in the fixed asset turnover ratio for Ball Corp. over the years suggests that the company may not be utilizing its fixed assets as effectively as it did in previous years to generate sales.
It is important for Ball Corp. to closely monitor and analyze its fixed asset turnover ratio to ensure efficient utilization of its fixed assets. A lower fixed asset turnover ratio may indicate potential inefficiencies in the company's operations or underutilization of its fixed assets, which could impact profitability and overall financial performance.
Peer comparison
Dec 31, 2023