ConAgra Foods Inc (CAG)

Fixed asset turnover

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Revenue (ttm)	US$ in thousands	11,624,600	11,673,000	11,720,500	11,853,600	11,852,800	11,826,400	11,689,900	11,443,000	11,195,600	11,037,300	10,884,000	10,800,600	10,792,500	11,412,500	11,168,300	10,980,600	10,678,400	10,003,700	10,149,100	9,754,600
Property, plant and equipment	US$ in thousands	2,896,900	2,876,700	2,876,500	2,914,600	2,736,400	2,702,000	2,688,200	2,704,600	2,737,200	2,655,500	2,622,800	2,646,200	2,572,000	2,526,800	2,478,000	2,430,700	2,365,400	2,317,800	2,322,200	2,348,000
Fixed asset turnover		4.01	4.06	4.07	4.07	4.33	4.38	4.35	4.23	4.09	4.16	4.15	4.08	4.20	4.52	4.51	4.52	4.51	4.32	4.37	4.15

May 26, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,624,600K ÷ $2,896,900K
= 4.01

ConAgra Foods Inc has demonstrated relatively stable fixed asset turnover over the past several quarters, ranging from 4.01 to 4.52. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets employed.

ConAgra Foods Inc's consistent fixed asset turnover ratios in the range of 4.01 to 4.52 suggest that the company is effectively utilizing its fixed assets to generate sales. The slight fluctuations in the ratio may indicate changes in the company's asset base or revenue generation. Overall, a fixed asset turnover ratio above 4 reflects strong efficiency in utilizing fixed assets to drive revenue growth.

It is essential for the company to monitor this ratio over time to ensure optimal asset utilization and operational efficiency. By maintaining a healthy fixed asset turnover ratio, ConAgra Foods Inc can continue to maximize its revenue generation from its fixed asset base.