Equifax Inc (EFX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,020,200 | 4,937,400 | 4,775,900 | 3,978,400 | 3,392,900 |
| Property, plant and equipment | US$ in thousands | 1,834,000 | 1,587,000 | 1,315,900 | 1,139,400 | 947,600 |
| Fixed asset turnover | 2.74 | 3.11 | 3.63 | 3.49 | 3.58 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,020,200K ÷ $1,834,000K
= 2.74
Equifax, Inc.'s fixed asset turnover has shown a declining trend over the past five years. The company's fixed asset turnover ratio was 3.70 in 2019, indicating that for each dollar of fixed assets, Equifax generated $3.70 in revenue. However, this ratio decreased to 3.62 in 2020, 3.74 in 2021, 3.23 in 2022, and further decreased to 2.87 in 2023.
A decreasing trend in fixed asset turnover may suggest inefficiency in utilizing fixed assets to generate revenue, potentially indicating underutilization of assets or a decrease in sales relative to the level of fixed assets. This trend warrants further investigation to understand the specific factors contributing to the decline in the company's fixed asset turnover and to implement strategies to improve asset utilization efficiency.