Caterpillar Inc (CAT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 | 53,800,000 |
| Property, plant and equipment | US$ in thousands | 12,680,000 | 12,028,000 | 12,090,000 | 12,401,000 | 12,904,000 |
| Fixed asset turnover | 5.29 | 4.94 | 4.22 | 3.37 | 4.17 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $67,060,000K ÷ $12,680,000K
= 5.29
The fixed asset turnover ratio for Caterpillar Inc. has shown a positive trend over the past five years, increasing from 4.17 in 2019 to 5.29 in 2023. This indicates that the company has been more efficient in generating sales revenue from its fixed assets over the years.
A higher fixed asset turnover ratio typically suggests that the company is utilizing its fixed assets more effectively to generate revenue. It implies that Caterpillar Inc. is managing its fixed assets efficiently, which could be a result of improved operational efficiency, better utilization of assets, or increased sales.
Overall, the trend in the fixed asset turnover ratio for Caterpillar Inc. reflects positively on the company's operational performance and suggests that it has been able to generate more sales revenue per dollar invested in fixed assets.
Peer comparison
Dec 31, 2023