Cable One Inc (CABO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,490,330 | 1,572,960 | 1,482,430 | 1,329,070 | 1,092,070 |
| Property, plant and equipment | US$ in thousands | 1,784,210 | 1,701,760 | 1,854,100 | 1,265,460 | 1,201,270 |
| Fixed asset turnover | 0.84 | 0.92 | 0.80 | 1.05 | 0.91 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,490,330K ÷ $1,784,210K
= 0.84
The fixed asset turnover ratio for Cable One Inc has shown some fluctuation over the past five years. The ratio was 0.94 in 2023, decreasing from 1.00 in 2022 and 1.05 in 2020, but higher than 0.87 in 2021 and 0.97 in 2019.
A fixed asset turnover ratio of less than 1 indicates that the company is generating less in revenue compared to its investment in fixed assets. This could be due to factors such as underutilization of assets or inefficiencies in operations.
The decrease in the fixed asset turnover ratio from 2022 to 2023 could signify a decline in the company's ability to generate sales from its fixed assets efficiently. It may be important for Cable One Inc to evaluate its asset management practices and operational efficiency to improve this ratio in the coming years.
Peer comparison
Dec 31, 2023