Balchem Corporation (BCPC)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 922,439 | 926,271 | 940,590 | 946,031 | 942,358 | 922,960 | 876,562 | 842,234 | 799,023 | 766,603 | 743,874 | 714,864 | 703,644 | 689,458 | 672,913 | 661,112 | 643,705 | 640,717 | 637,165 | 639,298 |
| Property, plant and equipment | US$ in thousands | 276,039 | 268,834 | 271,471 | 276,103 | 271,355 | 260,008 | 252,145 | 240,419 | 237,517 | 229,798 | 228,289 | 226,513 | 228,096 | 219,554 | 217,003 | 215,279 | 216,859 | 200,805 | 204,019 | 188,036 |
| Fixed asset turnover | 3.34 | 3.45 | 3.46 | 3.43 | 3.47 | 3.55 | 3.48 | 3.50 | 3.36 | 3.34 | 3.26 | 3.16 | 3.08 | 3.14 | 3.10 | 3.07 | 2.97 | 3.19 | 3.12 | 3.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $922,439K ÷ $276,039K
= 3.34
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. The ratio indicates how efficiently the company is utilizing its fixed assets to generate sales.
Based on the data provided for Balchem Corp., we observe that the fixed asset turnover ratio has fluctuated over the past eight quarters. The ratio ranged from a low of 3.34 in Q4 2023 to a high of 3.55 in Q3 2022.
Overall, the trend in fixed asset turnover for Balchem Corp. appears relatively stable, with minor fluctuations quarter over quarter. The company has consistently maintained a fixed asset turnover above 3.0, indicating that it generates $3 or more in revenue for every $1 invested in fixed assets.
A fixed asset turnover ratio above 1.0 is generally considered favorable, as it suggests that the company is effectively using its fixed assets to generate sales. In the case of Balchem Corp., its fixed asset turnover ratios exceeding 3.0 demonstrate efficient utilization of fixed assets and effectiveness in driving sales revenue.
It is important for the company to continue monitoring and maintaining its fixed asset turnover ratio to ensure continued efficiency in utilizing its fixed assets to drive sales growth and profitability.
Peer comparison
Dec 31, 2023