Crocs Inc (CROX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,799,360 | 3,421,060 | 2,291,690 | 1,375,710 | 1,219,870 |
| Property, plant and equipment | US$ in thousands | 238,315 | 181,529 | 108,398 | 57,467 | 47,405 |
| Fixed asset turnover | 15.94 | 18.85 | 21.14 | 23.94 | 25.73 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,799,360K ÷ $238,315K
= 15.94
Crocs Inc's fixed asset turnover has been declining over the past five years, from 25.96 in 2019 to 16.63 in 2023. This trend indicates that the company's ability to generate sales revenue from its investment in fixed assets has weakened over time.
A high fixed asset turnover ratio is generally preferred as it indicates that the company is efficiently utilizing its fixed assets to generate sales. Conversely, a decreasing fixed asset turnover could suggest that the company is not effectively utilizing its fixed assets or that sales are declining relative to the investment in fixed assets.
It is important for Crocs Inc to closely monitor and address the declining trend in fixed asset turnover to improve operational efficiency and financial performance. Further analysis is needed to identify the factors contributing to this trend and to implement strategic measures to optimize the use of fixed assets and enhance profitability.
Peer comparison
Dec 31, 2023