Topbuild Corp (BLD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 | 2,585,470 |
| Property, plant and equipment | US$ in thousands | 258,909 | 246,837 | 234,831 | 180,053 | 178,080 |
| Fixed asset turnover | 19.78 | 20.06 | 14.66 | 14.92 | 14.52 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,121,100K ÷ $258,909K
= 19.78
Fixed asset turnover is a financial ratio that measures how effectively a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficiently using its fixed assets to generate sales.
In the case of TopBuild Corp, the fixed asset turnover ratio has been relatively high and consistent over the past five years, ranging from 14.25 to 19.76. This suggests that the company has been effective in generating revenue from its investment in fixed assets such as property, plant, and equipment.
The slight fluctuations in the fixed asset turnover ratio over the years may be attributed to changes in the company's revenue and the value of its fixed assets. However, the overall trend indicates that TopBuild Corp has maintained a strong level of efficiency in utilizing its fixed assets to drive sales.
Overall, the high and consistent fixed asset turnover ratio of TopBuild Corp reflects its efficient management of fixed assets in generating revenue, which is a positive indicator of the company's operational performance.