ConAgra Foods Inc (CAG)
Fixed asset turnover
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,624,600 | 11,852,600 | 11,195,600 | 10,778,800 | 10,550,500 |
| Property, plant and equipment | US$ in thousands | 2,896,900 | 2,736,400 | 2,737,200 | 2,572,000 | 2,365,400 |
| Fixed asset turnover | 4.01 | 4.33 | 4.09 | 4.19 | 4.46 |
May 26, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,624,600K ÷ $2,896,900K
= 4.01
The fixed asset turnover ratio for ConAgra Foods Inc has shown a decreasing trend over the past five years. The ratio was 4.46 in May 2020 and has gradually decreased to 4.01 in May 2024. This indicates that the company is generating less revenue relative to its fixed assets in the most recent year compared to the preceding years.
A fixed asset turnover ratio of 4.01 in May 2024 means that for every dollar invested in fixed assets, the company generated $4.01 in sales. While the decreasing trend may raise concerns about the efficiency of asset utilization, it is important to consider other factors such as changes in business operations, asset mix, and industry competitiveness that could be influencing this ratio.
Overall, further analysis of ConAgra Foods Inc's operational efficiency and asset management practices in conjunction with the fixed asset turnover ratio would provide a more comprehensive understanding of the company's performance.
Peer comparison
May 26, 2024