Bellring Brands LLC (BRBR)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	1,666,800	1,371,500	1,247,100	988,300
Property, plant and equipment	US$ in thousands	8,500	8,000	8,900	10,200
Fixed asset turnover		196.09	171.44	140.12	96.89

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,666,800K ÷ $8,500K
= 196.09

The fixed asset turnover ratio measures how effectively a company generates revenue from its investment in fixed assets, such as property, plant, and equipment. Bellring Brands Inc's fixed asset turnover has shown a positive trend over the past five years. The ratio increased from 73.03 in 2019 to 196.09 in 2023, indicating that the company has been able to generate significantly more sales from its fixed assets.

A higher fixed asset turnover ratio suggests that Bellring Brands Inc is efficiently utilizing its fixed assets to generate sales. This could indicate effective production and operational processes, as well as potential cost savings in maintaining and utilizing fixed assets.

The consistent improvement in the fixed asset turnover ratio reflects positively on the company's operational efficiency and capital utilization. It indicates that Bellring Brands Inc has been able to generate more revenue per dollar invested in fixed assets, which is a favorable indication to investors and creditors.

Overall, the increasing trend of the fixed asset turnover ratio for Bellring Brands Inc demonstrates the company's ability to maximize the use of its fixed assets to drive sales, potentially leading to improved profitability and financial performance.