CSX Corporation (CSX)
Fixed asset turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,882,000 | 14,031,000 | 14,385,000 | 14,648,000 | 14,396,000 | 14,190,000 | 13,636,000 | 13,039,000 | 12,410,000 | 11,808,000 | 11,094,000 | 9,982,000 | 10,036,000 | 10,096,000 | 10,613,000 | 11,610,000 | 11,955,000 | 12,213,000 | 12,345,000 | 12,386,000 |
| Property, plant and equipment | US$ in thousands | 34,935,000 | 34,656,000 | 34,477,000 | 34,293,000 | 34,242,000 | 33,956,000 | 33,644,000 | 32,984,000 | 33,015,000 | 32,814,000 | 32,486,000 | 32,403,000 | 32,444,000 | 32,381,000 | 32,261,000 | 32,188,000 | 32,168,000 | 32,078,000 | 32,019,000 | 31,988,000 |
| Fixed asset turnover | 0.40 | 0.40 | 0.42 | 0.43 | 0.42 | 0.42 | 0.41 | 0.40 | 0.38 | 0.36 | 0.34 | 0.31 | 0.31 | 0.31 | 0.33 | 0.36 | 0.37 | 0.38 | 0.39 | 0.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $13,882,000K ÷ $34,935,000K
= 0.40
Fixed asset turnover is a ratio that measures the efficiency with which a company generates revenue from its investment in fixed assets. In the case of CSX Corp., the fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 0.40 to 0.44.
The consistent range of the fixed asset turnover ratio indicates that CSX Corp. is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio generally indicates better asset utilization and operational efficiency. In this case, CSX Corp.'s fixed asset turnover ratio is in the range that is considered acceptable for the industry.
However, the relatively low fixed asset turnover ratios observed for CSX Corp. suggest that there may be room for improvement in terms of optimizing the use of fixed assets to generate revenue. Management may want to explore potential strategies to increase the efficiency of asset utilization, such as improving asset maintenance, increasing productivity, or evaluating the need for additional investments in fixed assets.
Overall, while the fixed asset turnover ratios for CSX Corp. are stable, there may be opportunities for the company to enhance its operational efficiency and maximize the returns on its investment in fixed assets.
Peer comparison
Dec 31, 2023