Berry Global Group Inc (BERY)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,258,000 | 12,663,000 | 14,493,000 | 13,848,000 | 11,695,000 |
| Property, plant and equipment | US$ in thousands | 4,575,000 | 4,576,000 | 4,342,000 | 4,677,000 | 4,561,000 |
| Fixed asset turnover | 2.68 | 2.77 | 3.34 | 2.96 | 2.56 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,258,000K ÷ $4,575,000K
= 2.68
Fixed asset turnover is a financial ratio that indicates how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is generating more revenue per dollar of investment in fixed assets.
Analyzing Berry Global Group Inc's fixed asset turnover over the past five years, we observe fluctuations in the ratio. In FY 2022, the company achieved the highest fixed asset turnover of 3.34, indicating efficient usage of its fixed assets to generate revenue. This was a significant improvement from the previous year.
In the following year, FY 2023, the fixed asset turnover slightly decreased to 2.77, which could suggest a decrease in efficiency in utilizing fixed assets to generate revenue. However, the ratio remained relatively high, indicating overall efficient asset management.
In FY 2024, the fixed asset turnover further decreased to 2.68, suggesting a potential decline in the company's ability to generate revenue using its fixed assets efficiently compared to the previous year. Despite this decrease, the ratio is still favorable compared to some prior years.
Overall, Berry Global Group Inc's fixed asset turnover has shown variability over the years, with some fluctuations in efficiency in generating revenue from fixed assets. It would be beneficial for the company to further assess its asset utilization strategies to maintain or improve efficiency in the future.
Peer comparison
Sep 30, 2024