Clean Harbors Inc (CLH)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,754,620 | 5,765,470 | 5,607,830 | 5,459,390 | 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 |
| Property, plant and equipment | US$ in thousands | 2,265,410 | 2,452,310 | 2,408,650 | 2,330,480 | 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 |
| Fixed asset turnover | 2.54 | 2.35 | 2.33 | 2.34 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,754,620K ÷ $2,265,410K
= 2.54
Clean Harbors Inc's fixed asset turnover ratio has fluctuated over the past few years, ranging from a low of 2.01 to a high of 2.74. The fixed asset turnover measures how efficiently the company is generating revenue from its investment in fixed assets.
A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. In Clean Harbors Inc's case, the ratio has generally been trending upwards since 2020, reaching a peak of 2.74 by December 31, 2022. This suggests that the company has been able to increase its sales relative to its investment in fixed assets during this period.
However, there have been some periods of slight decline in the ratio, such as the decrease from 2.74 on December 31, 2022, to 2.34 on March 31, 2024. This may indicate a temporary decrease in efficiency in generating revenue from fixed assets.
Overall, Clean Harbors Inc's fixed asset turnover ratio shows a positive trend with some fluctuations, indicating that the company has been relatively efficient in utilizing its fixed assets to drive revenue growth.