Carpenter Technology Corporation (CRS)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	2,756,100	2,495,100	1,783,200	1,431,400	2,164,000
Property, plant and equipment	US$ in thousands	1,335,200	1,383,800	1,420,800	1,457,500	1,498,100
Fixed asset turnover		2.06	1.80	1.26	0.98	1.44

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,756,100K ÷ $1,335,200K
= 2.06

Carpenter Technology Corporation's fixed asset turnover has shown a positive trend over the last five years, increasing from 1.44 in June 2020 to 2.06 in June 2024. This indicates that the company is generating more revenue for each dollar invested in fixed assets.

The significant improvement in fixed asset turnover reflects better utilization of the company's fixed assets to generate sales. A higher fixed asset turnover ratio signifies greater efficiency in asset management and indicates that the company is effectively utilizing its fixed assets to drive revenue growth.

The consistent uptrend in fixed asset turnover suggests that Carpenter Technology Corporation has been successful in optimizing its asset base and improving operational efficiency over the years. This could be attributed to proactive management of assets, effective capacity utilization, or strategic investments in technology and equipment.

Overall, the increasing trend in fixed asset turnover for Carpenter Technology Corporation indicates a positive performance in terms of asset utilization and operational efficiency, which can be considered a favorable indicator for investors and stakeholders.