Chemours Co (CC)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,881,000 | 5,818,000 | 6,130,000 | 6,410,000 | 6,639,000 | 6,872,000 | 6,744,000 | 6,477,000 | 6,141,000 | 5,876,000 | 5,441,000 | 4,873,000 | 4,737,000 | 4,824,000 | 4,981,000 | 5,297,000 | 5,371,000 | 5,668,000 | 5,912,000 | 6,286,000 |
| Property, plant and equipment | US$ in thousands | 3,216,000 | 3,119,000 | 3,190,000 | 3,180,000 | 3,171,000 | 3,071,000 | 3,111,000 | 3,131,000 | 3,154,000 | 3,127,000 | 3,448,000 | 3,432,000 | 3,474,000 | 3,418,000 | 3,423,000 | 3,444,000 | 3,559,000 | 3,520,000 | 3,491,000 | 3,379,000 |
| Fixed asset turnover | 1.83 | 1.87 | 1.92 | 2.02 | 2.09 | 2.24 | 2.17 | 2.07 | 1.95 | 1.88 | 1.58 | 1.42 | 1.36 | 1.41 | 1.46 | 1.54 | 1.51 | 1.61 | 1.69 | 1.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,881,000K ÷ $3,216,000K
= 1.83
The fixed asset turnover ratio for Chemours Co has shown some fluctuations over the past few quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
From the data provided, we can see that the fixed asset turnover ratio has generally been on a downward trend since the end of 2022. This could indicate that the company's fixed assets are not being utilized as efficiently to generate sales.
Notably, there was a significant drop in the fixed asset turnover ratio from the first quarter of 2021 to the second quarter of 2022. This could suggest that there might have been a decrease in sales relative to the level of fixed assets during this period.
It is worth noting that the ratio has been fluctuating around an average of approximately 1.7 over the past few years. This indicates that, on average, Chemours Co generates $1.70 in sales for every dollar invested in fixed assets.
Overall, further analysis would be needed to understand the specific reasons behind the fluctuations in the fixed asset turnover ratio and to determine whether any actions need to be taken to improve the efficiency of the company's fixed asset utilization.
Peer comparison
Dec 31, 2023