Clean Harbors Inc (CLH)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,754,620 | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 |
| Property, plant and equipment | US$ in thousands | 2,265,410 | 2,067,030 | 1,884,100 | 1,781,910 | 1,465,030 |
| Fixed asset turnover | 2.54 | 2.61 | 2.74 | 2.13 | 2.14 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,754,620K ÷ $2,265,410K
= 2.54
Clean Harbors Inc's fixed asset turnover has shown a fluctuating trend over the past five years, ranging from 2.13 to 2.74. This ratio measures the efficiency with which the company is generating sales revenue from its investment in fixed assets.
In 2020, the fixed asset turnover was 2.14, indicating that for every dollar invested in fixed assets, the company generated $2.14 in sales revenue. The slight decrease in 2021 to 2.13 may suggest a potential inefficiency or decrease in sales generated from fixed assets that year.
However, there was a significant improvement in 2022, with the fixed asset turnover increasing to 2.74, showcasing a higher efficiency in generating sales revenue compared to the previous years. Subsequently, the ratio decreased in 2023 and 2024, but it remained relatively stable around 2.5, indicating a consistent performance in utilizing fixed assets to generate revenue.
Overall, Clean Harbors Inc's fixed asset turnover ratio fluctuated over the five-year period, with a peak in 2022. Further analysis of the company's operational efficiency and investment in fixed assets would provide more insights into the reasons behind these fluctuations.