Enerpac Tool Group Corp (EPAC)
Fixed asset turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 598,204 | 571,223 | 528,660 | 493,292 | 654,758 |
| Property, plant and equipment | US$ in thousands | 38,968 | 41,372 | 48,590 | 61,405 | 56,729 |
| Fixed asset turnover | 15.35 | 13.81 | 10.88 | 8.03 | 11.54 |
August 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $598,204K ÷ $38,968K
= 15.35
The fixed asset turnover ratio measures the efficiency with which a company utilizes its fixed assets to generate sales. A higher ratio indicates more efficient utilization of fixed assets.
Looking at the trend of Enerpac Tool Group Corp's fixed asset turnover ratio over the past five years, we observe a fluctuating pattern. The ratio increased from 8.03 in 2020 to 15.35 in 2023, indicating a substantial improvement in the company's ability to generate sales from its fixed assets.
This upward trend suggests that Enerpac Tool Group Corp has been effectively utilizing its fixed assets to drive revenue growth. This could be a result of factors such as improved operational efficiency, better asset management, or increased sales volume without a proportionate increase in fixed assets.
However, the ratio did exhibit some volatility, as seen in the decrease from 15.35 in 2023 to 13.81 in 2022. Even though this decrease indicates a slight dip in efficiency, the ratio remained at a relatively high level compared to previous years.
In 2021, the fixed asset turnover ratio was 10.88, which was significantly higher than the 8.03 recorded in 2020. This marked improvement suggests that the company made effective use of its fixed assets to drive sales during that period.
The ratio of 11.54 in 2019 indicates that the company was able to generate sales 11.54 times its investment in fixed assets during that year.
Overall, the upward trend in Enerpac Tool Group Corp's fixed asset turnover ratio signifies an increased efficiency in utilizing fixed assets to generate sales, which is a positive indicator of the company's operational performance and asset management.
Peer comparison
Aug 31, 2023