Brunswick Corporation (BC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,401,400 | 6,812,200 | 5,846,200 | 4,347,500 | 4,108,400 |
| Property, plant and equipment | US$ in thousands | 1,315,800 | 1,270,800 | 1,046,900 | 863,600 | 796,400 |
| Fixed asset turnover | 4.87 | 5.36 | 5.58 | 5.03 | 5.16 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,401,400K ÷ $1,315,800K
= 4.87
The fixed asset turnover ratio measures how efficiently Brunswick Corp. generates sales revenue from its investment in fixed assets. Based on the data provided, the fixed asset turnover has been relatively consistent over the past five years, ranging from 4.87 to 5.58.
A higher fixed asset turnover ratio indicates that Brunswick is effectively utilizing its fixed assets to generate sales, while a lower ratio suggests inefficiency in asset utilization.
The decreasing trend from 2019 to 2020, and then increasing trend from 2020 to 2021, followed by a slight decrease in 2022, and another increase in 2023, may indicate fluctuations in the company's operational efficiency in utilizing its fixed assets to generate revenue.
Overall, Brunswick Corp. has maintained a relatively strong fixed asset turnover ratio over the years, indicating a generally efficient use of fixed assets to drive sales.
Peer comparison
Dec 31, 2023