BWX Technologies Inc (BWXT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,450,040 | 2,189,500 | 2,093,650 | 2,093,260 | 1,857,780 |
| Property, plant and equipment | US$ in thousands | 1,228,520 | 1,134,900 | 1,045,640 | 816,471 | 580,241 |
| Fixed asset turnover | 1.99 | 1.93 | 2.00 | 2.56 | 3.20 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,450,040K ÷ $1,228,520K
= 1.99
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. For BWX Technologies Inc, the trend in fixed asset turnover over the past five years has shown a decline.
In 2019, the fixed asset turnover ratio was 3.27, indicating that the company generated $3.27 in sales for every dollar invested in fixed assets. However, this ratio has been declining steadily over the years, reaching 2.03 in 2023. This suggests that BWX Technologies Inc is becoming less efficient in utilizing its fixed assets to generate sales.
A declining fixed asset turnover ratio could be a cause for concern as it may indicate that the company is not effectively managing and utilizing its fixed assets to generate revenue. Further analysis would be required to understand the underlying reasons for this trend and to assess the impact on the company's overall financial performance.
Peer comparison
Dec 31, 2023