Celsius Holdings Inc (CELH)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,392,990 | 1,318,010 | 653,604 | 314,272 | 130,726 |
| Property, plant and equipment | US$ in thousands | 55,602 | 24,868 | 10,185 | 3,180 | 579 |
| Fixed asset turnover | 25.05 | 53.00 | 64.17 | 98.83 | 225.78 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,392,990K ÷ $55,602K
= 25.05
The fixed asset turnover ratio for Celsius Holdings Inc has experienced a significant decline over the five-year period from December 31, 2020, to December 31, 2024. The ratio decreased from 225.78 in 2020 to 25.05 in 2024. This indicates that the company's ability to generate sales revenue from its fixed assets has decreased substantially.
A high fixed asset turnover ratio is generally seen as positive, as it implies that the company is efficiently utilizing its fixed assets to generate sales. Conversely, a declining ratio suggests that the company may be facing challenges in effectively utilizing its fixed assets to generate revenue.
The sharp decrease in the fixed asset turnover ratio for Celsius Holdings Inc raises concerns about the company's asset management efficiency and operational performance. It may signal inefficiencies in production, underutilization of fixed assets, or a decrease in sales relative to the investment in fixed assets.
Further analysis and investigation into the reasons behind the declining fixed asset turnover ratio would be necessary to understand the root causes and to implement corrective measures to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2024