Belden Inc (BDC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,512,080 | 2,606,480 | 2,301,260 | 1,752,190 | 2,131,280 |
| Property, plant and equipment | US$ in thousands | 451,069 | 381,864 | 343,564 | 368,620 | 345,918 |
| Fixed asset turnover | 5.57 | 6.83 | 6.70 | 4.75 | 6.16 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,512,080K ÷ $451,069K
= 5.57
Fixed asset turnover ratio indicates the efficiency with which Belden Inc is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is generating more sales per dollar invested in fixed assets.
In the given data, Belden Inc's fixed asset turnover has fluctuated over the past five years. The ratio was highest in 2021 at 6.88, indicating that the company generated $6.88 in sales for every dollar invested in fixed assets. This could be a result of effective asset utilization or increased revenue generation during that period.
In 2022, the fixed asset turnover ratio decreased slightly to 6.83, but still remained relatively high, indicating continued efficiency in asset utilization. However, in 2023, the ratio dropped further to 5.57, which could imply either a decrease in sales generated from fixed assets or an increase in the value of fixed assets.
The fluctuations in the fixed asset turnover ratio over the years may warrant further investigation to understand the underlying factors affecting the efficiency of Belden Inc's fixed asset utilization. It is important for stakeholders to monitor this ratio to assess the company's ability to generate revenue from its investment in fixed assets.
Peer comparison
Dec 31, 2023