Balchem Corporation (BCPC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 922,439 | 942,358 | 799,023 | 703,644 | 643,705 |
| Property, plant and equipment | US$ in thousands | 276,039 | 271,355 | 237,517 | 228,096 | 216,859 |
| Fixed asset turnover | 3.34 | 3.47 | 3.36 | 3.08 | 2.97 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $922,439K ÷ $276,039K
= 3.34
Balchem Corp.'s fixed asset turnover has shown a fairly stable trend over the past five years. The ratio has ranged between 2.97 and 3.47, with the highest value in 2022 at 3.47 and the lowest in 2019 at 2.97. This indicates that, on average, the company generated $3.34 in sales for every dollar of fixed assets in 2023.
A fixed asset turnover ratio of over 1 suggests that the company is efficiently using its fixed assets to generate revenue. Balchem Corp.'s consistently high fixed asset turnover ratios indicate efficient utilization of its fixed assets to generate sales over the years. This efficiency can be a positive sign for investors and creditors, as it implies that the company is effectively managing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023