Carpenter Technology Corporation (CRS)

Fixed asset turnover

		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	Sep 30, 2019
Revenue (ttm)	US$ in thousands	2,756,000	3,797,300	3,802,500	3,757,400	3,628,400	2,335,500	2,122,700	1,929,400	1,783,800	1,653,000	1,518,600	1,473,100	1,423,200	1,447,900	1,686,200	1,913,600	2,166,400	2,370,500	2,391,900	2,373,400
Property, plant and equipment	US$ in thousands	1,335,200	1,351,400	1,364,200	1,371,200	1,383,800	1,383,600	1,390,500	1,402,000	1,420,800	1,425,900	1,429,600	1,440,900	1,457,500	1,306,700	1,326,100	1,334,100	1,498,100	1,395,200	1,385,800	1,380,200
Fixed asset turnover		2.06	2.81	2.79	2.74	2.62	1.69	1.53	1.38	1.26	1.16	1.06	1.02	0.98	1.11	1.27	1.43	1.45	1.70	1.73	1.72

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,756,000K ÷ $1,335,200K
= 2.06

The fixed asset turnover ratio for Carpenter Technology Corporation has shown fluctuations over the past few quarters, ranging from a low of 0.98 to a high of 2.81. This ratio measures how efficiently the company is generating sales from its investment in fixed assets.

From the data provided, we can observe that the fixed asset turnover ratio has generally been increasing since the end of 2021, reaching a peak of 2.81 in March 2024. This improvement indicates that Carpenter Technology Corporation is utilizing its fixed assets more efficiently to generate revenue.

However, it's worth noting that there have been some quarters where the ratio decreased, such as in June 2021 and March 2023. These decreases may signal that the company's investment in fixed assets is not being fully optimized to generate sales.

Overall, the trend in the fixed asset turnover ratio suggests that Carpenter Technology Corporation has been making progress in using its fixed assets more effectively to drive sales, although there have been periods of fluctuation that require further examination and scrutiny.