Carlisle Companies Incorporated (CSL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,586,900 | 5,449,400 | 4,810,300 | 3,969,900 | 4,484,600 |
| Property, plant and equipment | US$ in thousands | 655,200 | 602,000 | 759,900 | 672,100 | 783,500 |
| Fixed asset turnover | 7.00 | 9.05 | 6.33 | 5.91 | 5.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,586,900K ÷ $655,200K
= 7.00
The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficiently generating sales relative to its investment in fixed assets.
In the case of Carlisle Companies Inc., there has been some variation in the fixed asset turnover ratio over the past five years. The trend shows an increasing ratio from 5.48 in 2020 to a peak of 8.01 in 2022, which signifies improved efficiency in utilizing fixed assets to generate revenue during those years.
However, in 2023, the fixed asset turnover ratio decreased to 7.00. While still relatively high, the decline could indicate a slight decrease in efficiency in generating sales from fixed assets compared to the previous year. It's important for the company to closely monitor this ratio to ensure optimal utilization of its fixed assets in the future.
Overall, the historical trend of Carlisle Companies Inc.'s fixed asset turnover ratio suggests a generally efficient utilization of fixed assets to generate revenue, with some fluctuations that may require further analysis to understand underlying factors influencing the ratio.
Peer comparison
Dec 31, 2023