Church & Dwight Company Inc (CHD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,867,900 | 5,375,600 | 5,190,100 | 4,895,800 | 4,357,700 |
| Property, plant and equipment | US$ in thousands | 927,700 | 761,100 | 652,700 | 612,800 | 598,200 |
| Fixed asset turnover | 6.33 | 7.06 | 7.95 | 7.99 | 7.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,867,900K ÷ $927,700K
= 6.33
The fixed asset turnover ratio for Church & Dwight Co., Inc. has demonstrated a decreasing trend over the past five years, declining from 7.61 in 2019 to 6.33 in 2023. This indicates that the company generated $6.33 in net sales for each dollar invested in fixed assets in 2023.
A high fixed asset turnover ratio typically suggests that the company is efficiently utilizing its fixed assets to generate revenue. However, the decreasing trend in Church & Dwight's fixed asset turnover may imply challenges in maximizing the productivity of its fixed assets in recent years.
Further analysis is needed to determine the factors contributing to the decline in the fixed asset turnover ratio and to assess the company's overall operational efficiency and asset management strategies. It is recommended that the company closely monitors its fixed asset utilization and considers potential adjustments to improve efficiency and profitability.
Peer comparison
Dec 31, 2023