Dow Inc (DOW)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	44,622,000	45,860,000	49,245,000	53,489,000	56,902,000	59,407,000	60,129,000	58,350,000	54,968,000	51,310,000	46,185,000	40,654,000	38,542,000	38,040,000	39,092,000	41,752,000	42,951,000
Property, plant and equipment	US$ in thousands	21,066,000	20,560,000	20,402,000	20,323,000	20,442,000	20,032,000	20,160,000	20,347,000	20,555,000	19,648,000	19,864,000	19,897,000	20,239,000	20,413,000	20,618,000	20,806,000	20,996,000	21,003,000	21,250,000	23,492,000
Fixed asset turnover		2.12	2.23	2.41	2.63	2.78	2.97	2.98	2.87	2.67	2.61	2.33	2.04	1.90	1.86	1.90	2.01	2.05

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $44,622,000K ÷ $21,066,000K
= 2.12

To analyze Dow Inc's fixed asset turnover, which measures the company's ability to generate sales from its fixed assets, we consider the trend over the past eight quarters. The fixed asset turnover ratio is calculated by dividing net sales by average fixed assets. A higher ratio indicates more efficient utilization of fixed assets to generate sales.

Dow Inc's fixed asset turnover has displayed a downward trend from 2.78 in Q4 2022 to 2.12 in Q4 2023. This suggests a decrease in the company's ability to generate sales from its fixed assets over time.

It is important for stakeholders to monitor this trend closely as it may indicate potential issues with asset productivity and utilization. Further investigation into the company's capital expenditure and asset management strategies may be warranted to assess the reasons behind this decline in fixed asset turnover.