Corteva Inc (CTVA)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,226,000 | 17,344,000 | 17,531,000 | 17,738,000 | 17,455,000 | 17,109,000 | 16,703,000 | 16,078,000 | 15,655,000 | 15,383,000 | 14,875,000 | 14,439,000 | 14,217,000 | 13,993,000 | 14,041,000 | 14,406,000 | 13,846,000 |
| Property, plant and equipment | US$ in thousands | 4,287,000 | 4,320,000 | 4,306,000 | 4,271,000 | 4,254,000 | 4,185,000 | 4,300,000 | 4,333,000 | 4,329,000 | 4,310,000 | 4,341,000 | 4,299,000 | 4,396,000 | 4,273,000 | 4,293,000 | 4,358,000 | 4,546,000 |
| Fixed asset turnover | 4.02 | 4.01 | 4.07 | 4.15 | 4.10 | 4.09 | 3.88 | 3.71 | 3.62 | 3.57 | 3.43 | 3.36 | 3.23 | 3.27 | 3.27 | 3.31 | 3.05 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,226,000K ÷ $4,287,000K
= 4.02
Corteva Inc's fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 3.71 to 4.15. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.
From the data provided, Corteva Inc's fixed asset turnover ratio has been consistently above 4x, indicating that the company is effectively leveraging its fixed assets to generate revenue. The slight fluctuations in the ratio over the quarters suggest some variability in the efficiency of utilizing fixed assets, but overall, the company has maintained a strong performance in this aspect.
Furthermore, the trend of the fixed asset turnover ratio generally increasing from Q1 2022 to Q1 2023 indicates improving efficiency in utilizing fixed assets to generate revenue over this period. This suggests that Corteva Inc has been able to optimize its asset base to support revenue growth. Overall, the company's consistent performance in fixed asset turnover reflects effective management of its fixed assets to drive revenue generation.
Peer comparison
Dec 31, 2023