Floor & Decor Holdings Inc (FND)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,455,770 | 4,413,880 | 4,264,470 | 3,433,530 | 2,425,790 |
| Property, plant and equipment | US$ in thousands | — | — | 2,463,690 | 929,083 | 579,359 |
| Fixed asset turnover | — | — | 1.73 | 3.70 | 4.19 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,455,770K ÷ $—K
= —
Floor & Decor Holdings Inc's fixed asset turnover has exhibited a general decreasing trend over the years. In 2020, the company had a fixed asset turnover ratio of 4.19, indicating that for each dollar invested in fixed assets, the company generated $4.19 in revenue. However, by the end of 2021, this ratio decreased to 3.70, suggesting that the company was less efficient in utilizing its fixed assets to generate sales.
The trend worsened in 2022, as the fixed asset turnover ratio dropped significantly to 1.73. This sharp decline could imply that Floor & Decor Holdings Inc was struggling to generate revenue relative to its investment in fixed assets during that year. Unfortunately, there is no data available for 2023 and 2024, so it is difficult to assess the ongoing performance of the company in terms of fixed asset turnover.
Overall, the decreasing trend in the fixed asset turnover ratio indicates a potential inefficiency in utilizing fixed assets to generate revenue, which may warrant further investigation into the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2024