CF Industries Holdings Inc (CF)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,631,000 | 11,186,000 | 6,538,000 | 4,124,000 | 4,590,000 |
| Property, plant and equipment | US$ in thousands | 7,141,000 | 6,437,000 | 7,081,000 | 7,632,000 | 8,170,000 |
| Fixed asset turnover | 0.93 | 1.74 | 0.92 | 0.54 | 0.56 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,631,000K ÷ $7,141,000K
= 0.93
The fixed asset turnover ratio for CF Industries Holdings Inc has shown fluctuations over the past five years. In 2023, the fixed asset turnover ratio was 0.93, indicating that the company generated $0.93 in revenue for every dollar invested in fixed assets. This represents a decrease from the previous year when the ratio was 1.74.
The significant drop in the fixed asset turnover ratio from 2022 to 2023 suggests that the company may be facing challenges in efficiently utilizing its fixed assets to generate revenue. It could indicate potential inefficiencies in the company's operations or a decrease in the productivity of its fixed assets.
Comparing the 2023 ratio to the ratios in 2021, 2020, and 2019, it is evident that the company's fixed asset turnover has been fluctuating over the years. While the ratio in 2023 was higher than in 2021 and 2020, it was still lower than the ratio in 2019.
Overall, the trend in CF Industries Holdings Inc's fixed asset turnover ratio indicates a need for the company to improve the utilization of its fixed assets to increase revenue generation and operational efficiency. Monitoring and analyzing this ratio over time can provide valuable insights into the company's performance and operational effectiveness.
Peer comparison
Dec 31, 2023