Chemours Co (CC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,818,000 | 6,638,000 | 6,139,000 | 4,737,000 | 5,318,000 |
| Property, plant and equipment | US$ in thousands | 3,216,000 | 3,171,000 | 3,154,000 | 3,474,000 | 3,559,000 |
| Fixed asset turnover | 1.81 | 2.09 | 1.95 | 1.36 | 1.49 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,818,000K ÷ $3,216,000K
= 1.81
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover indicates that the company is generating more revenue for each dollar invested in fixed assets.
Based on the data provided for Chemours Co from 2019 to 2023, we observe fluctuations in the fixed asset turnover ratio. In 2019, the fixed asset turnover ratio was 1.49, which increased to 1.36 in 2020, indicating a decrease in efficiency in utilizing fixed assets to generate sales. However, from 2020 to 2022, the ratio improved steadily to 2.09, indicating increased efficiency in utilizing fixed assets during this period.
In 2023, the fixed asset turnover ratio decreased slightly to 1.81, which is still higher than the ratio in 2020 and 2021 but lower than the peak ratio in 2022. This suggests that Chemours Co may have experienced a slight decrease in efficiency in utilizing fixed assets to generate sales compared to the previous year.
Overall, the trend in fixed asset turnover for Chemours Co shows fluctuations over the years, with some years demonstrating improved efficiency in utilizing fixed assets to generate sales while others show a slight decrease. It is important for the company to continue monitoring and managing its fixed asset utilization to ensure optimal operational efficiency and profitability in the long run.
Peer comparison
Dec 31, 2023