Curtiss-Wright Corporation (CW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,796,860 | 2,510,060 | 2,464,460 | 2,391,340 | 2,487,960 |
| Property, plant and equipment | US$ in thousands | 332,796 | 342,708 | 360,031 | 378,200 | 385,593 |
| Fixed asset turnover | 8.40 | 7.32 | 6.85 | 6.32 | 6.45 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,796,860K ÷ $332,796K
= 8.40
Curtiss-Wright Corp.'s fixed asset turnover has exhibited a positive trend over the past five years, increasing from 6.45 in 2019 to 8.55 in 2023. This indicates that the company is generating more revenue from its fixed assets, which is a positive sign of efficiency in asset utilization.
A fixed asset turnover ratio of 8.55 in 2023 means that for every dollar invested in fixed assets, the company generated $8.55 in revenue. This suggests that Curtiss-Wright Corp. has been effectively utilizing its fixed assets to generate sales, which is crucial for maximizing profitability and shareholder value.
The consistent improvement in fixed asset turnover over the years reflects the company's ability to efficiently manage and utilize its fixed assets to drive revenue growth. The higher the fixed asset turnover, the more effectively the company is using its assets to generate revenue, indicating good operational performance and efficient capital allocation.
Overall, Curtiss-Wright Corp.'s increasing fixed asset turnover ratio is a positive indicator of its operational efficiency and effective management of fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023