Commercial Metals Company (CMC)

Fixed asset turnover

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Revenue	US$ in thousands	7,878,070	8,759,230	9,122,140	6,669,820	5,420,640
Property, plant and equipment	US$ in thousands	2,577,140	2,409,360	1,910,870	1,566,120	1,571,070
Fixed asset turnover		3.06	3.64	4.77	4.26	3.45

August 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,878,070K ÷ $2,577,140K
= 3.06

Commercial Metals Company's fixed asset turnover has shown some fluctuation over the past five years. The ratio measures the company's efficiency in generating revenue from its fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate sales.

In 2024, the fixed asset turnover ratio decreased to 3.06 from 3.64 in 2023, signaling a decline in the company's ability to generate revenue from its fixed assets compared to the previous year. This could be due to changes in the company's operations, such as increased investment in fixed assets without a proportional increase in revenue.

In 2022, the fixed asset turnover was relatively high at 4.77, indicating that the company was able to generate a significant amount of revenue relative to its fixed asset base. This could signify efficient asset utilization or effective sales strategies that year.

In 2021 and 2020, the fixed asset turnover ratios were 4.26 and 3.45, respectively, suggesting that the company was still maintaining a relatively high level of efficiency in generating sales from its fixed assets during those periods.

Overall, while there have been fluctuations in Commercial Metals Company's fixed asset turnover over the past five years, the company has demonstrated varying levels of efficiency in utilizing its fixed assets to generate revenue. Further analysis would be needed to understand the factors contributing to these fluctuations and to assess the company's overall asset utilization efficiency.