CNH Industrial N.V. (CNH)
Fixed asset turnover
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 21,752,000 | 23,084,000 | 24,163,000 | 24,687,000 | 24,838,000 | 24,733,000 | 24,248,000 | 23,551,000 | 36,020,000 | 34,885,000 | 33,977,000 | 33,428,000 | 22,665,000 | 24,411,000 | 24,815,000 | 26,180,000 | 25,226,000 | 25,094,000 | 27,083,000 | 28,079,000 |
| Property, plant and equipment | US$ in thousands | 1,980,000 | 1,909,000 | 1,903,000 | 1,913,000 | 1,681,000 | 1,643,000 | 1,574,000 | 1,532,000 | 1,405,000 | 1,429,000 | 1,463,000 | 1,475,000 | 4,556,000 | 4,667,000 | 4,574,000 | 4,923,000 | 4,538,000 | 4,448,000 | 4,886,000 | 5,269,000 |
| Fixed asset turnover | 10.99 | 12.09 | 12.70 | 12.90 | 14.78 | 15.05 | 15.41 | 15.37 | 25.64 | 24.41 | 23.22 | 22.66 | 4.97 | 5.23 | 5.43 | 5.32 | 5.56 | 5.64 | 5.54 | 5.33 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $21,752,000K ÷ $1,980,000K
= 10.99
The fixed asset turnover ratio for CNH Industrial N.V. has shown a fluctuating trend over the past several quarters. The ratio measures how efficiently the company is generating revenue from its investment in fixed assets.
From December 2019 to September 2020, the fixed asset turnover ratio ranged between 5.32 and 5.56, indicating that for each dollar invested in fixed assets, the company generated between $5.32 and $5.56 in revenue.
The ratio saw a significant increase in efficiency from December 2020 to March 2021, jumping to 22.66. This sharp increase suggests that the company was able to generate significantly more revenue relative to its investment in fixed assets during that period.
Subsequently, the ratio continued to rise steadily through September 2022, reaching a peak of 25.64. This indicates that CNH Industrial N.V. was effectively utilizing its fixed assets to generate revenue during this period.
However, the ratio then started to decline from September 2022 onwards, with fluctuations occurring until September 2024. Despite the fluctuations, the ratio remained relatively high, indicating that the company continued to generate revenue efficiently from its fixed assets.
Overall, the trend in the fixed asset turnover ratio for CNH Industrial N.V. reflects varying levels of efficiency in utilizing its fixed assets to generate revenue over the past few years.
Peer comparison
Sep 30, 2024