Berry Global Group Inc (BERY)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	12,663,000	14,493,000	13,848,000	11,695,000	8,878,000
Property, plant and equipment	US$ in thousands	4,576,000	4,342,000	4,677,000	4,561,000	4,714,000
Fixed asset turnover		2.77	3.34	2.96	2.56	1.88

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,663,000K ÷ $4,576,000K
= 2.77

The fixed asset turnover ratio measures the efficiency of Berry Global Group Inc in generating sales revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

Looking at the trend over the past five years, Berry Global's fixed asset turnover has exhibited some fluctuation. In the most recent fiscal year ending September 30, 2023, the fixed asset turnover was 2.77, which represents a decrease from the previous year's ratio of 3.34. This decline indicates a reduced ability to generate sales from its fixed assets compared to the prior year.

However, when considering the longer-term trend, the company's fixed asset turnover has demonstrated improvement when compared to the ratios from two and three years ago. This suggests that the company has become more efficient in utilizing its fixed assets to drive sales over the past few years.

Overall, while the recent decrease in fixed asset turnover may raise some concerns, the longer-term trend indicates an overall improvement in the company's ability to generate sales from its investment in fixed assets. However, further analysis of the factors influencing this ratio would be necessary to fully assess the company's asset utilization efficiency.