DXP Enterprises Inc (DXPE)
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 | 1,624,653 | 1,630,258 | 1,604,174 | 1,550,194 | 1,451,697 | 1,344,867 | 1,248,616 | 1,166,773 | 1,093,114 | 1,037,874 | 970,085 | 937,202 | 993,218 | 1,056,018 | 1,161,769 | 1,242,731 | 1,252,318 | 1,267,818 | 1,248,873 | 1,225,530 |
| Property, plant and equipment | US$ in thousands | 49,898 | 56,277 | 47,538 | 47,754 | 45,964 | 46,657 | 49,974 | 50,269 | 51,880 | 51,756 | 52,456 | 54,110 | 56,899 | 57,452 | 62,962 | 63,867 | 64,000 | 58,516 | 55,534 | 51,404 |
| Fixed asset turnover | 32.56 | 28.97 | 33.75 | 32.46 | 31.58 | 28.82 | 24.99 | 23.21 | 21.07 | 20.05 | 18.49 | 17.32 | 17.46 | 18.38 | 18.45 | 19.46 | 19.57 | 21.67 | 22.49 | 23.84 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,624,653K ÷ $49,898K
= 32.56
Fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. DXP Enterprises Inc's fixed asset turnover has shown an improving trend over the past few quarters, indicating a more efficient utilization of its fixed assets to generate sales.
The ratio has consistently increased from 17.46 in December 2020 to 32.56 in December 2023. This significant improvement suggests that DXP Enterprises Inc has been able to generate more revenue per dollar invested in fixed assets.
The current ratio of 32.56 in December 2023 indicates that, on average, DXP Enterprises Inc generates $32.56 in revenue for every dollar invested in fixed assets. This indicates strong efficiency in utilizing fixed assets to support revenue generation.
Overall, the increasing trend in fixed asset turnover shows that DXP Enterprises Inc is effectively managing its fixed assets to drive sales growth and improve efficiency in its operations.
Peer comparison
Dec 31, 2023