Commercial Metals Company (CMC)

Fixed asset turnover

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Revenue (ttm)	US$ in thousands	7,878,080	8,095,050	8,364,790	8,536,410	8,759,370	9,226,700	9,389,600	9,361,170	9,117,680	8,467,780	7,801,570	7,252,900	6,656,150	6,046,880	5,534,950	5,430,800	5,429,840	5,563,710	5,833,520	5,888,080
Property, plant and equipment	US$ in thousands	2,577,140	2,511,860	2,474,520	2,423,680	2,409,360	2,268,150	2,159,730	2,028,960	1,910,870	1,808,390	1,649,260	1,587,440	1,566,120	1,562,500	1,557,140	1,549,380	1,571,070	1,513,470	1,522,340	1,504,310
Fixed asset turnover		3.06	3.22	3.38	3.52	3.64	4.07	4.35	4.61	4.77	4.68	4.73	4.57	4.25	3.87	3.55	3.51	3.46	3.68	3.83	3.91

August 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,878,080K ÷ $2,577,140K
= 3.06

Commercial Metals Company's fixed asset turnover has shown a generally increasing trend over the past few quarters, indicating that the company is becoming more efficient in utilizing its fixed assets to generate revenues. The ratio has consistently been above 3, which suggests that for every dollar invested in fixed assets, the company is generating more than $3 in sales.

The peak in fixed asset turnover was observed in February 2023 at 4.61, indicating strong efficiency in asset utilization during that period. Subsequently, although there have been fluctuations, the ratio has remained relatively high, with the latest reported ratio in August 2024 at 3.06.

Overall, the trend in fixed asset turnover suggests that Commercial Metals Company has been successful in optimizing its fixed asset base to drive revenue generation, which is a positive indicator of operational efficiency and productivity.