Commercial Metals Company (CMC)
Fixed asset turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,759,230 | 9,122,140 | 6,669,820 | 5,420,640 | 5,761,080 |
| Property, plant and equipment | US$ in thousands | 2,409,360 | 1,910,870 | 1,566,120 | 1,571,070 | 1,500,970 |
| Fixed asset turnover | 3.64 | 4.77 | 4.26 | 3.45 | 3.84 |
August 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,759,230K ÷ $2,409,360K
= 3.64
The fixed asset turnover of Commercial Metals Co. has fluctuated over the past five years, with a general declining trend from 2019 to 2023. In 2023, the fixed asset turnover ratio dropped to 3.65 from 4.66 in 2022, indicating a decrease in the company's ability to generate sales from its fixed assets. This decline may raise concerns about the company's efficiency in utilizing its fixed assets to generate revenue. However, it is important to consider other factors such as changes in the company's asset base and sales volume before drawing definitive conclusions about the company's operational performance.
Peer comparison
Aug 31, 2023