Deere & Company (DE)
Fixed asset turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,716,000 | 61,251,000 | 52,577,000 | 44,024,000 | 35,540,000 |
| Property, plant and equipment | US$ in thousands | 7,451,000 | 6,917,000 | 6,623,000 | 8,314,000 | -1,544,000 |
| Fixed asset turnover | 6.94 | 8.86 | 7.94 | 5.30 | — |
October 27, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $51,716,000K ÷ $7,451,000K
= 6.94
Deere & Company's fixed asset turnover has shown variability over the past five years, as indicated by the figures from 2020 to 2024. The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio is generally preferable as it indicates that the company is using its fixed assets more efficiently to generate sales.
In 2024, Deere & Company's fixed asset turnover ratio was 6.94, reflecting a decrease from the previous year's ratio of 8.86. This decline suggests a potential decrease in the company's efficiency in utilizing its fixed assets to generate sales revenue. However, it is important to note that a single year's ratio may not provide a complete picture, and further analysis of trends over several years is recommended to assess the company's performance.
Comparing the 2024 figure with the ratios from 2022 and 2021, Deere & Company's fixed asset turnover has exhibited fluctuations, with the ratio reaching a peak of 8.86 in 2023. This variability could be influenced by various factors, such as changes in sales volume, asset utilization, investment in fixed assets, or operational efficiency.
Overall, while a high fixed asset turnover ratio is generally favorable, it is crucial to consider the broader context of the company's operations and industry conditions in interpreting the significance of changes in this ratio over time. Additional analysis and comparison with industry benchmarks may provide further insights into Deere & Company's performance in efficiently utilizing its fixed assets.
Peer comparison
Oct 27, 2024