Expeditors International of Washington Inc (EXPD)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,280,370	17,046,400	16,511,700	10,091,100	8,166,180
Property, plant and equipment	US$ in thousands	479,225	501,916	487,870	506,425	499,344
Fixed asset turnover		19.37	33.96	33.84	19.93	16.35

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,280,370K ÷ $479,225K
= 19.37

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates better utilization of fixed assets.

Looking at the data for Expeditors International Of Washington, Inc., we can observe fluctuations in the fixed asset turnover ratio over the past five years. In 2019, the company had a fixed asset turnover of 16.37, which increased to 19.98 in 2020. This suggests that the company improved its efficiency in utilizing fixed assets to generate sales revenue in 2020.

The trend continued in 2021 and 2022, with fixed asset turnover ratios of 33.87 and 34.01, respectively. These exceptionally high ratios indicate a significant increase in the efficiency of fixed asset utilization during these years.

In 2023, the fixed asset turnover ratio dropped to 19.41. While this is lower compared to the previous two years, it is still higher than the ratios observed in 2019 and 2020. This could indicate a slight decrease in efficiency in utilizing fixed assets to generate sales revenue compared to the peak years of 2021 and 2022.

Overall, Expeditors International Of Washington, Inc. has shown a generally positive trend in improving its fixed asset turnover over the years, with occasional fluctuations. However, the company should continue to monitor and potentially optimize its fixed asset utilization to ensure sustained efficiency in driving sales revenue.