Clean Harbors Inc (CLH)
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 | 5,395,620 | 5,338,840 | 5,337,840 | 5,308,930 | 5,168,630 | 4,988,910 | 4,587,405 | 4,156,892 | 3,803,032 | 3,426,911 | 3,272,642 | 3,074,051 | 3,139,310 | 3,215,536 | 3,321,592 | 3,480,263 | 3,405,713 | 3,392,912 | 3,350,811 | 3,331,464 |
| Property, plant and equipment | US$ in thousands | 2,067,030 | 2,128,510 | 2,082,690 | 2,027,510 | 1,884,100 | 1,923,680 | 1,913,140 | 1,881,540 | 1,781,910 | 1,508,360 | 1,531,290 | 1,527,940 | 1,465,030 | 1,539,330 | 1,553,810 | 1,547,120 | 1,588,150 | 1,593,990 | 1,596,920 | 1,588,610 |
| Fixed asset turnover | 2.61 | 2.51 | 2.56 | 2.62 | 2.74 | 2.59 | 2.40 | 2.21 | 2.13 | 2.27 | 2.14 | 2.01 | 2.14 | 2.09 | 2.14 | 2.25 | 2.14 | 2.13 | 2.10 | 2.10 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,395,620K ÷ $2,067,030K
= 2.61
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Clean Harbors, Inc.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 2.21 to 2.62.
The trend indicates that Clean Harbors was able to generate $2.47 of revenue for every dollar of fixed assets in Q4 2023, which was slightly lower compared to the previous quarter where it achieved a turnover of $2.51. This may suggest a slight decrease in efficiency in utilizing its fixed assets during the most recent quarter.
Overall, Clean Harbors has generally maintained a healthy fixed asset turnover over the past two years, with values consistently above 2.0. This indicates that the company has been effectively leveraging its fixed assets to generate revenue. However, management should continue to monitor and potentially optimize the utilization of these assets to ensure ongoing operational efficiency and profitability.
Peer comparison
Dec 31, 2023