Crown Holdings Inc (CCK)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,041,000 | 11,532,000 | 12,632,000 | 11,118,000 | 11,274,000 |
| Property, plant and equipment | US$ in thousands | 4,927,000 | 5,062,000 | 4,540,000 | 4,036,000 | 3,652,000 |
| Fixed asset turnover | 2.44 | 2.28 | 2.78 | 2.75 | 3.09 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,041,000K ÷ $4,927,000K
= 2.44
The fixed asset turnover ratio for Crown Holdings Inc has exhibited a declining trend over the past five years, starting at 3.09 in December 2020 and decreasing to 2.44 by December 2024. This ratio indicates the company's ability to generate sales revenue from its investment in fixed assets.
The decrease in the fixed asset turnover ratio may suggest that the company is becoming less efficient in utilizing its fixed assets to generate sales. This could be due to factors such as underutilization of assets, slower inventory turnover, or inefficient production processes.
It is essential for Crown Holdings Inc to monitor and improve its fixed asset turnover to ensure optimal utilization of its fixed assets and maximize its sales revenue. Further analysis and potential strategic changes may be required to address the declining trend in the fixed asset turnover ratio.
Peer comparison
Dec 31, 2024