Crown Holdings Inc (CCK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,532,000 | 12,632,000 | 11,118,000 | 11,274,000 | 11,665,000 |
| Property, plant and equipment | US$ in thousands | 5,062,000 | 4,540,000 | 4,036,000 | 3,652,000 | 3,887,000 |
| Fixed asset turnover | 2.28 | 2.78 | 2.75 | 3.09 | 3.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,532,000K ÷ $5,062,000K
= 2.28
Crown Holdings, Inc.'s fixed asset turnover has exhibited fluctuations over the past five years. The ratio declined from 3.00 in 2019 to 2.76 in 2020, indicating that the company generated $2.76 in sales for every $1 invested in fixed assets in 2020. The ratio then increased in 2021 and 2022 to 2.82 and 2.85, respectively, suggesting improved efficiency in utilizing fixed assets to generate revenue.
However, in 2023, the fixed asset turnover ratio decreased to 2.37, signaling a potential decline in the company's ability to generate sales relative to its investment in fixed assets. It is important for Crown Holdings to assess the reasons behind this decrease and explore opportunities to enhance the utilization of its fixed assets to drive revenue growth more effectively.
Peer comparison
Dec 31, 2023