Fox Factory Holding Corp (FOXF)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,448,180 | 1,598,830 | 1,289,730 | 880,113 | 748,041 |
| Property, plant and equipment | US$ in thousands | 237,192 | 202,215 | 192,003 | 163,288 | 108,379 |
| Fixed asset turnover | 6.11 | 7.91 | 6.72 | 5.39 | 6.90 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,448,180K ÷ $237,192K
= 6.11
Fox Factory Holding Corp's fixed asset turnover has experienced fluctuations over the past five years. The ratio measures how effectively the company utilizes its fixed assets to generate revenue, with a higher ratio indicating better efficiency.
In 2023, the fixed asset turnover decreased to 6.11 from 7.91 in 2022, signaling a reduction in the company's ability to generate sales from its fixed assets. This decline could be attributed to various factors such as a decrease in revenue relative to the investment in fixed assets or an increase in the value of fixed assets without a proportionate rise in sales.
Comparing the 2023 ratio to the figures from 2021 and 2019, it is apparent that Fox Factory Holding Corp's efficiency in utilizing fixed assets is slightly below the levels seen in those years. However, the 2023 ratio is still higher than the 2020 figure, implying that the company improved its asset efficiency compared to two years ago.
Overall, although the fixed asset turnover ratio for 2023 decreased compared to the previous year, it remains relatively strong when viewed in the context of the company's historical performance. Fox Factory Holding Corp may need to further analyze its asset management strategies to enhance efficiency and maximize revenue generation from its fixed assets in the coming years.
Peer comparison
Dec 31, 2023