Dow Inc (DOW)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 42,964,000 | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 |
| Property, plant and equipment | US$ in thousands | 22,004,000 | 21,066,000 | 20,442,000 | 20,555,000 | 20,239,000 |
| Fixed asset turnover | 1.95 | 2.12 | 2.78 | 2.67 | 1.90 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $42,964,000K ÷ $22,004,000K
= 1.95
The fixed asset turnover ratio provides insight into how efficiently a company like Dow Inc is utilizing its fixed assets to generate sales. The trend analysis of Dow Inc's fixed asset turnover from December 31, 2020, to December 31, 2024, demonstrates fluctuations in the company's asset utilization efficiency.
In 2020, Dow Inc had a fixed asset turnover of 1.90, indicating that each dollar of fixed assets generated $1.90 of sales. This ratio improved significantly in 2021, reaching 2.67, suggesting increased efficiency in utilizing fixed assets to generate revenue. The trend continued to strengthen in 2022, with the fixed asset turnover ratio further increasing to 2.78, implying enhanced asset utilization efficiency.
However, there was a slight decline in 2023, with the fixed asset turnover ratio dropping to 2.12. This may suggest a potential decrease in efficiency in utilizing fixed assets to drive sales. In 2024, the ratio further decreased to 1.95, indicating a continued decline in asset turnover efficiency compared to the previous year.
Overall, the trend analysis of Dow Inc's fixed asset turnover reveals fluctuations in how effectively the company is leveraging its fixed assets to generate revenue over the years.It would be important for Dow Inc to further analyze the reasons behind these fluctuations and take corrective actions to optimize the utilization of its fixed assets for sustained financial performance.
Peer comparison
Dec 31, 2024