Deere & Company (DE)
Fixed asset turnover
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 43,081,000 | 47,971,000 | 52,141,000 | 56,232,000 | 55,230,000 | 54,263,000 | 54,423,000 | 54,600,000 | 58,291,000 | 61,907,000 | 63,908,000 | 60,892,000 | 58,007,000 | 57,482,000 | 55,860,000 | 57,310,000 | 58,028,000 | 55,582,000 | 49,377,000 | 45,100,000 |
| Property, plant and equipment | US$ in thousands | — | — | 7,451,000 | — | 7,118,000 | — | 6,965,000 | — | 6,751,000 | 7,162,000 | 6,917,000 | 13,127,000 | 6,709,000 | 6,524,000 | 12,714,000 | 6,502,000 | 6,056,000 | 6,623,000 | 5,666,000 | 6,465,000 |
| Fixed asset turnover | — | — | 7.00 | — | 7.76 | — | 7.81 | — | 8.63 | 8.64 | 9.24 | 4.64 | 8.65 | 8.81 | 4.39 | 8.81 | 9.58 | 8.39 | 8.71 | 6.98 |
January 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $43,081,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a 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.
Analyzing the fixed asset turnover data of Deere & Company over the period provided, we observe fluctuations in the ratio. The ratio ranged from a low of 4.39 on January 31, 2023, to a high of 9.58 on October 31, 2022. Generally, an increasing trend in the fixed asset turnover ratio signifies improved efficiency in asset utilization.
Deere & Company experienced a notable drop in the fixed asset turnover ratio from 9.24 on October 29, 2023, to 4.64 on July 31, 2023, before recovering to 8.64 on October 31, 2023. This fluctuation may indicate changes in the company's operations, investments in fixed assets, or changes in revenue generation during this period.
It is essential for Deere & Company to closely monitor its fixed asset turnover ratio to ensure optimal asset utilization, efficiency, and profitability. The company should assess the reasons behind fluctuations in the ratio and take appropriate actions to maintain or improve its efficiency in utilizing fixed assets to drive revenue growth.
Peer comparison
Jan 31, 2025