Clean Harbors Inc (CLH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 | 3,409,670 |
| Property, plant and equipment | US$ in thousands | 2,067,030 | 1,884,100 | 1,781,910 | 1,465,030 | 1,588,150 |
| Fixed asset turnover | 2.61 | 2.74 | 2.13 | 2.14 | 2.15 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,395,620K ÷ $2,067,030K
= 2.61
Clean Harbors, Inc.'s fixed asset turnover has fluctuated over the past five years, ranging from 2.04 to 2.61. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets.
In this case, the decreasing trend from 2022 to 2023 (2.61 to 2.47) suggests a slightly less efficient utilization of fixed assets to generate revenue. However, the current ratio of 2.47 still indicates that Clean Harbors, Inc. is effectively using its fixed assets to generate revenue compared to the year 2021 and 2020.
It is important to further analyze the reasons behind this trend, such as changes in the company's asset base, investment strategy, operational efficiency, or revenue generation. Additionally, comparing the fixed asset turnover ratio with industry benchmarks and competitors' ratios can provide valuable insights into Clean Harbors, Inc.'s performance in this aspect.
Peer comparison
Dec 31, 2023