Caterpillar Inc (CAT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 64,809,000 | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 |
| Property, plant and equipment | US$ in thousands | — | — | 12,028,000 | 8,172,000 | 12,401,000 |
| Fixed asset turnover | — | — | 4.94 | 6.24 | 3.37 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $64,809,000K ÷ $—K
= —
Fixed asset turnover is a key financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. Looking at the trend for Caterpillar Inc from 2020 to 2024, we observe a significant improvement in the fixed asset turnover ratio.
In 2020, the fixed asset turnover was 3.37, indicating that the company generated $3.37 in sales for every dollar invested in fixed assets. This ratio improved to 6.24 by the end of 2021, reflecting a substantial increase in efficiency in utilizing its fixed assets to generate sales.
Although the ratio decreased slightly to 4.94 in 2022, it still remained at a relatively high level. Unfortunately, there is missing data for 2023 and 2024. Nonetheless, the overall trend suggests that Caterpillar Inc has been able to significantly increase the efficiency of its fixed asset utilization over the years analyzed.
A higher fixed asset turnover ratio generally signifies better operational efficiency and effective management of fixed assets in generating revenue. Therefore, the improving trend in Caterpillar Inc's fixed asset turnover ratio indicates positive developments in how the company leverages its fixed assets to drive sales.
Peer comparison
Dec 31, 2024