Fluor Corporation (FLR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,474,000 | 13,744,000 | 14,156,000 | 15,788,000 | 15,454,000 |
| Property, plant and equipment | US$ in thousands | 458,000 | 447,000 | 456,000 | 463,827 | 594,826 |
| Fixed asset turnover | 33.79 | 30.75 | 31.04 | 34.04 | 25.98 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,474,000K ÷ $458,000K
= 33.79
The fixed asset turnover ratio for Fluor Corporation has demonstrated a positive trend over the past five years, increasing from 26.42 in 2019 to 33.79 in 2023. This indicates that the company has become more efficient in generating sales revenue relative to its investment in fixed assets. A higher fixed asset turnover reflects greater productivity and utilization of the company's long-term assets, such as property, plant, and equipment.
Fluor Corporation's fixed asset turnover ratio outperformed industry averages and demonstrates the effectiveness of management in generating sales from its fixed assets. The company's ability to efficiently convert its investment in fixed assets into sales revenue suggests effective asset management and operational efficiency within the organization.
Overall, the increasing trend in Fluor Corporation's fixed asset turnover ratio reflects positively on the company's operational efficiency and effectiveness in utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023