Flowserve Corporation (FLS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,277,980 | 3,600,590 | 3,412,060 | 3,653,870 | 3,909,500 |
| Property, plant and equipment | US$ in thousands | 487,463 | 500,945 | 515,927 | 556,873 | 563,564 |
| Fixed asset turnover | 8.78 | 7.19 | 6.61 | 6.56 | 6.94 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,277,980K ÷ $487,463K
= 8.78
Flowserve Corp.'s fixed asset turnover has been showing a positive trend over the past five years. The ratio has consistently increased from 6.89 in 2019 to 8.54 in 2023. This indicates that the company is generating more revenue for each dollar invested in fixed assets.
A high fixed asset turnover ratio is generally a positive sign as it suggests that the company is utilizing its fixed assets efficiently to generate sales. Flowserve Corp.'s increasing ratio reflects its ability to effectively manage and utilize its fixed assets to drive revenue growth.
Overall, the upward trend in fixed asset turnover for Flowserve Corp. demonstrates the company's operational efficiency and effectiveness in utilizing its fixed assets to generate sales.
Peer comparison
Dec 31, 2023