Fortune Brands Innovations Inc. (FBIN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 | 5,764,600 |
| Property, plant and equipment | US$ in thousands | 975,000 | 783,700 | 670,800 | 917,400 | 824,200 |
| Fixed asset turnover | 4.74 | 6.03 | 7.16 | 3.95 | 6.99 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,626,200K ÷ $975,000K
= 4.74
Fortune Brands Innovations Inc.'s fixed asset turnover has fluctuated over the past five years, indicating varying efficiency in generating revenue from its fixed assets. The trend shows a decrease from 2018 to 2020, with a notable dip in 2020, suggesting a potential decline in the company's ability to utilize its fixed assets to generate sales during that period. However, there was a significant rebound in 2021 and 2022, with the fixed asset turnover ratio reaching 7.16 and 6.03 respectively, indicating improved efficiency in utilizing fixed assets to generate revenue.
In 2023, the fixed asset turnover decreased again to 4.74, signaling a potential decrease in revenue generated from the company's fixed assets compared to the previous year. Overall, while the company has shown fluctuations in its fixed asset turnover ratio, it is essential to further investigate the reasons behind these variations to assess the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023