Fortune Brands Innovations Inc. (FBIN)
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 | 4,626,200 | 4,596,800 | 4,531,100 | 4,622,800 | 4,723,000 | 4,809,100 | 4,883,500 | 4,858,200 | 4,801,100 | 5,242,800 | 5,625,000 | 5,770,700 | 6,090,300 | 5,901,100 | 5,708,000 | 5,839,400 | 5,764,600 | 5,714,800 | 5,636,600 | 5,558,400 |
| Property, plant and equipment | US$ in thousands | 975,000 | 929,200 | 866,600 | 805,800 | 783,700 | 1,097,700 | 1,082,800 | 1,064,300 | 670,800 | 934,700 | 918,200 | 905,100 | 917,400 | 791,700 | 794,200 | 807,600 | 824,200 | 800,400 | 804,900 | 806,300 |
| Fixed asset turnover | 4.74 | 4.95 | 5.23 | 5.74 | 6.03 | 4.38 | 4.51 | 4.56 | 7.16 | 5.61 | 6.13 | 6.38 | 6.64 | 7.45 | 7.19 | 7.23 | 6.99 | 7.14 | 7.00 | 6.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,626,200K ÷ $975,000K
= 4.74
Fortune Brands Innovations Inc. has exhibited fluctuating levels of fixed asset turnover over the past few quarters. The fixed asset turnover ratio measures how efficiently the company is generating sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue.
The trend in Fortune Brands Innovations Inc.'s fixed asset turnover shows some variability, with values ranging from 4.38 to 7.45 over the past two years. The company experienced a peak in fixed asset turnover in March 2020, with a ratio of 7.45, indicating that it was generating significant sales relative to its investment in fixed assets at that time.
Despite some fluctuations, the company generally maintained a healthy fixed asset turnover ratio above 4.00 throughout the period under review. This suggests that Fortune Brands Innovations Inc. has been effectively utilizing its fixed assets to generate sales and has been relatively efficient in managing its asset base to support revenue generation.
It is important for the company to continue monitoring its fixed asset turnover ratio to ensure that its assets are being efficiently utilized to drive revenue growth and profitability. Any significant deviations from the historical trend may warrant further analysis to identify potential inefficiencies in asset utilization or opportunities for improvement.
Peer comparison
Dec 31, 2023