Fortune Brands Innovations Inc. (FBIN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,609,000 | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 |
| Property, plant and equipment | US$ in thousands | 999,200 | 975,000 | 783,700 | 670,800 | 917,400 |
| Fixed asset turnover | 4.61 | 4.74 | 6.03 | 7.16 | 3.95 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,609,000K ÷ $999,200K
= 4.61
Fortune Brands Innovations Inc.'s fixed asset turnover has shown fluctuating trends over the past five years. It increased from 3.95 in December 2020 to 7.16 in December 2021, indicating that the company generated $7.16 in revenue for every $1 of fixed assets invested during that period. The sharp increase suggests that the company was able to efficiently utilize its fixed assets to generate revenue in 2021.
However, the fixed asset turnover ratio declined in the subsequent years, reaching 6.03 in December 2022, 4.74 in December 2023, and 4.61 in December 2024. The decreasing trend may imply challenges in effectively utilizing fixed assets to generate revenue or potential inefficiencies in the company's operations during those years.
Overall, while Fortune Brands Innovations Inc. experienced a peak in fixed asset turnover in 2021, the subsequent decline in the ratio highlights the need for the company to focus on optimizing its asset utilization to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024