Crown Holdings Inc (CCK)
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 | 11,532,000 | 11,716,000 | 11,928,000 | 12,382,000 | 12,632,000 | 12,492,000 | 12,255,000 | 11,672,000 | 11,632,000 | 11,816,000 | 11,385,000 | 10,666,000 | 10,345,000 | 10,174,000 | 10,769,000 | 11,667,000 | 11,665,000 | 11,608,000 | 11,698,000 | 11,709,000 |
| Property, plant and equipment | US$ in thousands | 5,062,000 | 4,876,000 | 4,890,000 | 4,704,000 | 4,540,000 | 4,265,000 | 4,133,000 | 4,083,000 | 4,036,000 | 3,838,000 | 3,783,000 | 4,190,000 | 3,652,000 | 3,889,000 | 3,817,000 | 3,752,000 | 3,887,000 | 3,739,000 | 3,761,000 | 3,734,000 |
| Fixed asset turnover | 2.28 | 2.40 | 2.44 | 2.63 | 2.78 | 2.93 | 2.97 | 2.86 | 2.88 | 3.08 | 3.01 | 2.55 | 2.83 | 2.62 | 2.82 | 3.11 | 3.00 | 3.10 | 3.11 | 3.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,532,000K ÷ $5,062,000K
= 2.28
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. It indicates how efficiently a company is using its fixed assets to generate revenue.
Analyzing the fixed asset turnover ratios of Crown Holdings, Inc. for the past eight quarters, we can see a general decreasing trend from Q1 2022 to Q4 2023. The ratio has declined from 2.81 in Q1 2022 to 2.37 in Q4 2023.
A higher fixed asset turnover ratio is generally preferred as it shows that the company is effectively utilizing its fixed assets to generate sales. In the case of Crown Holdings, Inc., the decreasing trend in the fixed asset turnover ratio may indicate that the company's efficiency in generating sales from its fixed assets has declined over the past quarters.
Further analysis is required to understand the factors contributing to this trend. It could be due to a decrease in sales relative to the book value of fixed assets, inefficient asset utilization, changes in the business model, or other operational issues. Investors and stakeholders may need to investigate these factors to assess the company's operational efficiency and future prospects.
Peer comparison
Dec 31, 2023