Eastman Chemical Company (EMN)
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 | 9,210,000 | 9,376,000 | 9,818,000 | 10,278,000 | 10,580,000 | 10,901,000 | 10,912,000 | 10,781,000 | 10,476,000 | 9,968,000 | 9,370,000 | 8,641,000 | 8,473,000 | 8,492,000 | 8,695,000 | 9,134,000 | 9,273,000 | 9,444,000 | 9,666,000 | 9,924,000 |
| Property, plant and equipment | US$ in thousands | 5,548,000 | 5,426,000 | 5,402,000 | 5,258,000 | 5,160,000 | 4,982,000 | 4,959,000 | 4,997,000 | 4,996,000 | 5,172,000 | 5,181,000 | 5,466,000 | 5,549,000 | 5,489,000 | 5,478,000 | 5,498,000 | 5,571,000 | 5,534,000 | 5,550,000 | 5,576,000 |
| Fixed asset turnover | 1.66 | 1.73 | 1.82 | 1.95 | 2.05 | 2.19 | 2.20 | 2.16 | 2.10 | 1.93 | 1.81 | 1.58 | 1.53 | 1.55 | 1.59 | 1.66 | 1.66 | 1.71 | 1.74 | 1.78 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,210,000K ÷ $5,548,000K
= 1.66
The fixed asset turnover ratio for Eastman Chemical Co has displayed a declining trend over the past eight quarters. In Q4 2022, the ratio stood at its peak of 2.19, indicating that the company generated $2.19 in revenue for every dollar invested in fixed assets.
Subsequently, the ratio has shown a consistent decrease quarter by quarter, reaching 1.66 in Q4 2023. This suggests that the company's efficiency in utilizing its fixed assets to generate sales has decreased over time.
A lower fixed asset turnover ratio could imply that Eastman Chemical Co is either experiencing challenges in effectively utilizing its fixed assets to generate revenue or that the company has been heavily investing in fixed assets without corresponding increases in sales. Further analysis of the company's operational efficiency and capital expenditures is recommended to gain a better understanding of the factors influencing this trend.
Peer comparison
Dec 31, 2023