Corteva Inc (CTVA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,226,000 | 17,455,000 | 15,655,000 | 14,217,000 | 13,846,000 |
| Property, plant and equipment | US$ in thousands | 4,287,000 | 4,254,000 | 4,329,000 | 4,396,000 | 4,546,000 |
| Fixed asset turnover | 4.02 | 4.10 | 3.62 | 3.23 | 3.05 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,226,000K ÷ $4,287,000K
= 4.02
The fixed asset turnover ratio measures how efficiently Corteva Inc is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
From 2019 to 2023, Corteva's fixed asset turnover ratio has been increasing steadily, from 3.05 to 4.02. This trend suggests that Corteva is becoming more efficient in generating revenue from its fixed assets over the years.
In 2023, the fixed asset turnover ratio stands at 4.02, which means that Corteva generated $4.02 in revenue for every dollar invested in fixed assets. This indicates that Corteva is effectively using its fixed assets to generate sales.
Overall, the increasing trend in the fixed asset turnover ratio for Corteva reflects improved efficiency in utilizing fixed assets, which is a positive indicator for the company's operational performance and potential profitability.
Peer comparison
Dec 31, 2023