CF Industries Holdings Inc (CF)
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 | 6,631,000 | 7,668,000 | 8,716,000 | 10,330,000 | 11,186,000 | 11,118,000 | 10,159,000 | 8,358,000 | 6,538,000 | 5,100,000 | 4,585,000 | 4,201,000 | 4,124,000 | 4,071,000 | 4,262,000 | 4,560,000 | 4,590,000 | 4,673,000 | 4,675,000 | 4,473,000 |
| Property, plant and equipment | US$ in thousands | 7,141,000 | 6,156,000 | 6,218,000 | 6,294,000 | 6,437,000 | 6,500,000 | 6,622,000 | 6,906,000 | 7,081,000 | 7,210,000 | 7,437,000 | 7,492,000 | 7,632,000 | 7,724,000 | 7,791,000 | 7,938,000 | 8,170,000 | 8,247,000 | 8,336,000 | 8,471,000 |
| Fixed asset turnover | 0.93 | 1.25 | 1.40 | 1.64 | 1.74 | 1.71 | 1.53 | 1.21 | 0.92 | 0.71 | 0.62 | 0.56 | 0.54 | 0.53 | 0.55 | 0.57 | 0.56 | 0.57 | 0.56 | 0.53 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,631,000K ÷ $7,141,000K
= 0.93
CF Industries Holdings Inc's fixed asset turnover has exhibited fluctuation over the past eight quarters. In Q4 2023, the fixed asset turnover was 0.93, marking a decline from the previous quarter when it was 1.25. This decrease suggests that the company generated less revenue relative to its fixed assets in Q4 compared to Q3.
Looking further back, CF Industries Holdings Inc experienced a gradual increase in fixed asset turnover from Q1 2022 to Q4 2022, reaching a peak of 1.74 in Q4 2022. Subsequently, there was a slight decline in Q1 2023, followed by a more significant drop in Q2 2023.
The variations in fixed asset turnover indicate changes in the company's efficiency in generating revenue from its fixed assets. A higher fixed asset turnover ratio implies that the company is utilizing its fixed assets more effectively to generate sales. Conversely, a lower ratio may indicate underutilization of fixed assets or lower sales relative to the value of these assets.
In conclusion, CF Industries Holdings Inc should closely monitor its fixed asset turnover ratio trends to ensure efficient utilization of fixed assets and maximize revenue generation.
Peer comparison
Dec 31, 2023