Flowserve Corporation (FLS)
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 | 4,268,876 | 4,144,376 | 3,927,236 | 3,733,520 | 3,569,619 | 3,458,369 | 3,447,565 | 3,461,678 | 3,466,525 | 3,532,325 | 3,590,953 | 3,618,040 | 3,668,956 | 3,751,856 | 3,826,408 | 3,891,483 | 3,924,802 | 3,843,502 | 3,791,118 | 3,772,349 |
| Property, plant and equipment | US$ in thousands | 487,463 | 492,323 | 500,075 | 496,434 | 500,945 | 473,224 | 487,299 | 506,655 | 515,927 | 513,168 | 526,101 | 534,899 | 556,873 | 551,011 | 547,471 | 550,853 | 563,564 | 575,845 | 590,213 | 587,915 |
| Fixed asset turnover | 8.76 | 8.42 | 7.85 | 7.52 | 7.13 | 7.31 | 7.07 | 6.83 | 6.72 | 6.88 | 6.83 | 6.76 | 6.59 | 6.81 | 6.99 | 7.06 | 6.96 | 6.67 | 6.42 | 6.42 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,268,876K ÷ $487,463K
= 8.76
The fixed asset turnover ratio measures a company's ability to generate sales revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.
Analyzing the data for Flowserve Corp. over the past eight quarters, we observe a fluctuating trend in the fixed asset turnover ratio. In Q4 2023 and Q3 2023, the fixed asset turnover ratio stood at 8.54 and 8.52, respectively, indicating a relatively high level of efficiency in generating sales compared to the investment in fixed assets during these periods.
The ratio peaked in Q4 2023 at 8.54, suggesting that Flowserve Corp. was very efficient in utilizing its fixed assets to generate revenue during that quarter. Conversely, the lowest fixed asset turnover ratio was observed in Q1 2022 at 6.92, indicating a relatively lower level of efficiency in converting fixed assets into sales during that period.
Overall, the trend in Flowserve Corp.'s fixed asset turnover ratio shows variability over the quarters, but generally reflects the company's ability to efficiently use its fixed assets to drive revenue generation. This highlights the importance of monitoring and managing fixed asset turnover to optimize operational performance and financial efficiency.
Peer comparison
Dec 31, 2023