Deluxe Corporation (DLX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,192,260 | 2,238,010 | 2,022,200 | 1,790,780 | 2,008,720 |
| Property, plant and equipment | US$ in thousands | 93,786 | 124,894 | 125,966 | 88,680 | 96,467 |
| Fixed asset turnover | 23.38 | 17.92 | 16.05 | 20.19 | 20.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,192,260K ÷ $93,786K
= 23.38
The fixed asset turnover ratio for Deluxe Corp. has shown some fluctuation over the past five years. It increased from 20.82 in 2019 to 20.19 in 2020, indicating a slight decrease in the efficiency of the company's fixed assets utilization. However, in 2021 and 2022, the ratio decreased further to 16.05 and 17.92, respectively, suggesting a decline in the company's ability to generate sales from its fixed assets.
In 2023, the fixed asset turnover ratio improved to 18.81, indicating a slight recovery in the efficiency of Deluxe Corp.'s fixed assets utilization compared to the previous two years. Overall, the historical trend of the fixed asset turnover ratio suggests that Deluxe Corp. may have faced challenges in efficiently utilizing its fixed assets in generating sales, but the recent improvement in 2023 is a positive sign for the company's operational performance in this aspect.