CSX Corporation (CSX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,882,000 | 14,396,000 | 12,254,000 | 9,881,000 | 11,304,000 |
| Property, plant and equipment | US$ in thousands | 34,935,000 | 34,242,000 | 33,015,000 | 32,444,000 | 32,168,000 |
| Fixed asset turnover | 0.40 | 0.42 | 0.37 | 0.30 | 0.35 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,882,000K ÷ $34,935,000K
= 0.40
The fixed asset turnover ratio for CSX Corp. has fluctuated over the past five years. It decreased from 0.37 in 2019 to 0.33 in 2020, before experiencing an increase to 0.38 in 2021. However, in the following years, it declined again to 0.43 in 2022 and further to 0.42 in 2023.
A low fixed asset turnover ratio indicates that the company is not generating significant revenue relative to its investment in fixed assets. This could suggest inefficiency in asset utilization or potentially excessive investment in fixed assets compared to the revenue generated. It is important for CSX Corp. to analyze the reasons behind these fluctuations in the fixed asset turnover ratio and consider strategies to improve asset efficiency and maximize returns on investments in fixed assets.
Peer comparison
Dec 31, 2023