Commercial Metals Company (CMC)

Fixed asset turnover

		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	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	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	5,776,260	5,541,700
Property, plant and equipment	US$ in thousands	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	1,500,970	1,473,570
Fixed asset turnover		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	3.85	3.76

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,364,790K ÷ $2,474,520K
= 3.38

The fixed asset turnover ratio for Commercial Metals Company shows a varying trend over the last several quarters. The ratio started at 3.76 in the first quarter of fiscal year 2020, decreased slightly to 3.85, and then fluctuated between 3.68 and 3.91 in the subsequent quarters. The ratio peaked at 4.77 in the first quarter of fiscal year 2022 and has been gradually declining since then.

Overall, the company has been efficient in generating revenue from its fixed assets, with the ratio consistently above 3.0, indicating that for each dollar invested in fixed assets, the company generated a relatively high amount of revenue. However, the recent decline in the ratio suggests a potential decrease in operational efficiency or slowing revenue growth relative to its investment in fixed assets. Monitoring this ratio over time will help in assessing the company's ability to efficiently utilize its fixed assets to generate sales.