CDW Corp (CDW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,149,400 | 23,513,000 | 20,669,900 | 18,312,600 | 17,873,000 |
| Property, plant and equipment | US$ in thousands | 195,500 | 188,800 | 195,800 | 175,500 | 363,100 |
| Fixed asset turnover | 108.18 | 124.54 | 105.57 | 104.35 | 49.22 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $21,149,400K ÷ $195,500K
= 108.18
CDW Corp's fixed asset turnover ratio has shown variability over the past five years. The ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.
Looking at the trend, CDW Corp's fixed asset turnover ratio decreased from 2019 to 2020 but then increased significantly from 2020 to 2021, peaking at 125.79. This substantial increase suggests that the company improved its efficiency in generating sales from its fixed assets. However, in 2022 and 2023, the ratio decreased, indicating a potential decline in efficiency in utilizing fixed assets to generate revenue.
Overall, while CDW Corp's fixed asset turnover ratio has shown fluctuations over the years, the company has generally demonstrated efficient utilization of its fixed assets to generate sales, with the ratio being significantly higher than in the previous years. It is essential for CDW Corp to monitor this ratio closely to ensure ongoing efficiency in utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023